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They took the "bold" step to become an OEM because their retail partners were either lukewarm to or half-assing the formfactor they've been trying to push for over a decade.
No matter what happens with the tablets though, it'll still be a sideline. Tablets still have too many tradeoffs to even think about displacing Microsoft's core business.
But if they sell the units below cost to try to buy their way into the market couldn't that be considered dumping? Not to mention using their Windows and Office profits to cover it could run afoul of Sherman Antitrust.
This will be interesting to see how the courts, especially the EU who seems to have gotten fed up with the usual MSFT tricks reacts if the price turns out to be true. There is just no way I can see it at THAT price with THOSE specs unless they are taking a hell of a loss per unit.
EU is sadly far to slow moving an entity. They will only crack down on them if they develop a suitable market share and then abuse it. By which point, they can happily pay any fine imposed.
Even then, what are they doing that would get them in trouble?
You can't crack down on MS for IE as iPad (dominant market leader) does the same with Safari. Office equivalents are included in many tablets already. Just not the iPad. BB Playbook, for example, has "documents to go" included. Limiting the installation of another OS/App Store is generally accepted as standard on all tablets by the consumer market.
Remember, its not 'illegal' in any way to sell a loss-leading product. At launch, the XBOX 360 was Losing about $120 per unit. Microsoft made their money back, and then some via games sales (app sales in the case of the RT).




Member since:
2005-07-06
Zune was a sideline and its not realistic to even compare the two.
This could make or break their whole OS (the core of their dominance). This is why they took the incredibly bold step to become an OEM.
MS will market this (and by proxy windows 8) Everywhere they can and then some.
My prediction is that the marketing will be on a scale we haven't seen since Windows 95. In the UK, Microsoft bought the Times of London for a day, printing 1.5 million copies of a special edition and giving them all way free!