With consumers largely ignoring Windows RT so far, Microsoft may be considering cutting licensing fees to make Windows RT tablets cheaper and help them compete with low-cost Android tablets.
Microsoft launched its first range of tablets, which included the Surface RT and Surface Pro, running on Windows RT and Windows Pro in October 2012. The company hoped to give competition to the market leader iPad but failed to entice a big audience in the tablet industry.
Market observers believe that both the Surface RT and the Surface Pro tablets are overpriced. When compared to other Android-based tablets such as Google Nexus 10, the Surface RT tablet costs around $100 more. Moreover, the Windows App store does not have the high number of apps when compared to Android or iOS stores.
"Topeka Capital analyst Brian White has released a new research note claiming that Microsoft is planning to release a cheaper version of Windows RT that could result in 'a 35-40% price reduction' in Windows RT tablets going forward," reports BGR.
If Microsoft reduces the licensing fees for Windows RT then it is likely that the price of Surface RT tablet along with other Windows RT-based tablets will reduce.
BGR also reports "News that Microsoft plans to push low-cost Windows tablets comes after the company made some changes to its Windows 8 hardware certification guidelines last week that significantly lowered the minimum resolution requirements for devices, thus potentially paving the way for OEMs to make smaller 7-inch tablets."
The smaller 7-inch tablet market is still booming as a result companies will want to manufacture smaller and more cost effective tablets to entice customers. Apple has already launched the 7.9-inch iPad mini. Many other companies will want to dive into the deep waters of the smaller tablet space. If a smaller tablet running on Windows RT operating system is launched, it can give stiff competition to iPad mini.
It is not known if Microsoft is planning on a smaller form factor tablet but it will be interesting to see a 7-inch Windows RT tablet in the market.