Microsoft lowers XP prices for ultraportables

Microsoft is trying to offer an attractive alternative to Linux as an operating system for ultraportables with a price reduction of Windows XP. The price reduction is subject to conditions attached to the hardware.

The ultraportables that qualify for the discounted Windows XP licenses must have relatively meager specifications. For example, the single-core processor may have a maximum clock speed of 1GHz, although faster processors such as the new Atom from Intel and C7-M processors from Via are allowed as an exception. The ulcpc’s must not have more than 1GB of memory and the hard disk must not be larger than 80GB. Remarkable are the restrictions with regard to the screen: the maximum 10.2 inch screen may not have touchscreen functionality.

Microsoft would also announce the new price for Windows XP Home in documents it sent to hardware manufacturers familiar have made: from now on, manufacturers in ‘developing countries’ such as China and India only have to pay $26 for a license; in the rest of the world, $32 per XP license is required. In addition, manufacturers in emerging markets could receive an additional $10 discount, bringing XP Home’s price to $16. The price of an XP license, even with the extra discount, is still well above the price of the XP Starter variant, a version of XP with less functionality, which would cost just three dollars.

With the price reduction, Microsoft wants to offer an affordable alternative to Linux on the cheap ultraportables: manufacturers would be inclined to supply Linux instead of Windows for cost reasons. The hardware restrictions would provide assurances to Microsoft that the budget segment of notebooks and PCs will not take market share from PCs that can run Windows Vista. Microsoft expects the ulcpc market to grow very quickly within a few years: the company even thinks that no fewer than ten to thirteen million units will be sold in 2008, partly equipped with Windows XP, of course.