This photo was taken at the annual Build conference. It was there that Microsoft declared its new strategy to break in the mobile market. All devices with a screen smaller than 9" such as smartphones and smaller tablets, will get Windows and Windows Phone for free. It is not the customers that will get their hands on the free OS(maybe at a later time), but the OEMs.
What does this mean for us customers? Supposedly, cheaper devices. But you can never be sure of such things. Unless the OEMs are really open about their pricing methods, we can not know for certain.
Microsoft's previous mobile strategy back in 2010, with Windows Phone 7 was that of small licensing fees. At the time this was a surprise and was a very welcome change. Device-makers would pay Microsoft a few bucks in exchange of having the backing of its massive patent portfolio.
Now four years later, it's clear that that strategy had no effect. Microsoft is in 3rd place when it comes to mobile devices. And it's a long 3rd place. It isn't even considerable when you put it against Google or Apple.
By setting the limit at sub 9" screens Microsoft wants to protect the revenue stream form laptops and desktops. Even though that market is shrinking, Microsoft's Windows is still the dominant OS. It would be a shame to stop that money from coming, wouldn't it? But in the mobile market, considering its poor performance, this last move can improve things.
Microsoft is having some problems with OEMs too. Samsung is barely interested as it focuses on the Galaxy Brand, synonymous with Android. HTC has difficulties selling its top Android devices lately. Nokia which is the biggest supporter of Windows Phone, is getting bought from Microsoft so this deal does not really affect it. Maybe this new price will interest other smartphone makers, in China perhaps?
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