Microsoft (MSFT) does not officially launch Windows 8 until next week on October 26, but so far, its efforts are proving rocky. There are two problems with Microsoft’s $1.5 billion marketing campaign: The first is confusion for its surface product, and the second is pricing.
Windows RT or Windows Surface
Windows RT is a stripped down version of Windows 8. Costing relatively less than the full version, this tablet does not run existing Windows applications. Consumers will need to buy (or find) these legacy applications on the application store if they want to run them on the RT. If application developers for those programs did not create an RT-version of the application, then it will not be available.
In short, Windows RT tablet does not really run Windows 8, because it’s not as capable. RT does not support “x64/64” installations.
Windows RT Pricing
RT is priced at $499 for 32GB of storage. Preloaded applications installed along with space requirements for the operating system take 12GB, leaving just 20GB of storage available. The basic model will not include a touch cover (an additional $100), and all models will run on an NVIDIA (NVDA) Tegra 3 processor.
The pricing for Windows RT will be:
$499 – 32GB
$599 – 32GB with touch cover
$699 – 64GB with touch cover
Forrester conducted a survey to determine what adoption for Windows 8 would be in the enterprise space. Only one-third of respondents are planning to use Windows 8. When Windows 7 was launched, it was two-thirds.
The notion that a recovery in the PC industry will be quick will prove to be incorrect. Windows 8 and the Surface tablet will not provide a short-term positive catalyst for companies relying on PC sales.
Business Section: Further Investing Ideas
Below is a performance chart of the companies relying on strong PC sales and mentioned in this article:
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