Microsoft plans cheaper hybrid devices to boost tablet sales

NEW DELHI: Software major Microsoft Corporation is working to bring down the cost of Windows OS-based two-in-one tablet PCs or hybrid devices in India, a move aimed at stimulating demand for the tablets that have been losing out to big screen smartphones. Microsoft has partnered with Indian vendors such as Micromax, Xolo, Notion Ink, Sakri and iBall to bring down the prices of these devices, which can function as a tablet as well as PC.

“We have deep investments in the Chinese technology ecosystem as we are further trying to bring the cost down,” Vineet Durani, director of Windows Business Group at Microsoft India, told ET. “Earlier, they were in the price range of Rs 40,000 and upwards. Now, they cost under Rs 15,000 in India. Prices are expected to fall further in the next six months.”

According to research firm IDC, Microsoft’s software presence in the tablet market could grow dramatically over the next five years to reach 14% with 38 million shipments worldwide. The firm expects demand for Windowsbased tablets and 2-in-1 devices to soar 41% year-on-year in the current fiscal and account for 7% of the global tablet market.

IDC says by 2019, Microsoft and its partners will claim 14% of that market with 38 million shipments worldwide, a good part of which will be for India. Windows 2-in-1 devices will “bridge the gap” between PCs and tablets, considering the declining interest in 7-8 inch tablets.

“Presently, we are seeing a good uptake of these 2-in-1 devices among college students, first time jobbers and users that need basic computing in the country,” said Durani.

He said the launch of Windows 10 OS will also fuel demand for these devices. as there will be a unified store and zero fragmentation of apps. According to Cyber-Media Research, tablet shipments into India fell 13.9% sequentially to 1.02 million in the quarter to March 2015. As per the research body, Windows-based tablets account for 3.4% of the market.