Microsoft Windows Woes Continue

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By Douglas A. McIntyre Published
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Microsoft Corp. (NASDAQ: MSFT) has thrown in the towel in the portable device market, as it drops its price on Windows RT.

The company has continued to struggle with the legacy Windows products for PCs, and it will put out an 8.1 versions to help address some customer objections to its new interface. The portable problem is much more vexing. It is critical that Microsoft take market share from Apple Inc. (NASDAQ: AAPL) and Google Inc.’s (NASDAQ: GOOG) Android, which continue to grow. Android in particular has taken the lead and its app stores, critical to customer loyalty, and may soon pass Apple’s in terms of downloads.

According to Bloomberg:

Microsoft Corp. is cutting the price of its Windows software for small tablets, seeking to shore up foundering efforts to combat Apple Inc in the mobile-computing market, people with knowledge of the matter said.

Microsoft is using the changes to try and get more manufacturers to adopt Windows RT, a version of its flagship software for tablets, said the people, who asked not to be identified because pricing is confidential. The price cuts affect Windows RT for small-sized tablets.

A year after unveiling the first Windows RT machines aimed at eroding Apple and Google Inc. lead in the $64 billion tablet market, Redmond, Washington-based Microsoft is struggling. Global device makers such as Hewlett-Packard Co. and HTC Corp. are shunning the system, leaving a dearth of RT machines in stores and giving Windows RT less than a percentage point of market share in the first quarter, compared with 40 percent for Apple, according to IDC.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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