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Tom Warren from The Verge gets it just right about Windows 8 |

June 14, 2012
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In a new post on The Verge, writer Tom Warren hits the nail right on the head when discussing some of the challenges Microsoft will face when dealing with OEMS as they set prices for Windows 8.

In the post titled Microsoft’s ‘riskiest’ Windows 8 bet: hardware manufacturers, Mr. Warren says the following:

Microsoft is clearly positioning Windows RT as the choice for iPad competitors.

and

What we’ve seen so far suggests that neither OEMs nor Microsoft have anything that can compete with the iPad on wow factor or affordability just yet. Instead, there may be a mix of tablets, ultrabooks, and hybrids (a throwback to 2002) running Microsoft’s new operating system — offering what OEMs and Microsoft would call an alternative to the iPad.

Apple’s scale affords discount prices on bulk components, while its deft management of its largely Chinese supply chain keeps operational costs to a minimum. Lacking these advantages, Microsoft’s partners seem unable to match Apple in terms of price and quality — foregoing one fundamental for the other. In this way, Microsoft’s breadth of OEMs are a disadvantage, as they compete against each other for razor-thin profit margins.

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