Get Ready for a Microsoft Corporation (MSFT) Windows 8 Price Hike

The PC market continues to stagnate, with researchers Gartner and IDC both showing that Microsoft Corporation (NASDAQ:MSFT) Windows 8 is doing little to turn the tide and the broader PC market is suffering for it. Sounds like just about the worst time for a Windows 8 price hike, but that’s exactly what’s about to happen.

We’re talking about Windows 8 upgrades only here, which Microsoft has been offering Windows 8 Pro at a promotional price of $40 since last summer for eligible PCs running Windows 7. The promotion was always set to end on Jan. 31, so interested Windows users should act now while they still can. After that, the Windows 8 Pro upgrade price jumps back up to $200.

With the recent entry of low-cost alternatives to computing like tablets or Google Inc (NASDAQ:GOOG) Chromebooks, a $200 upgrade to an operating system that’s derided as confusing is a lot for the average consumer to stomach. The first generation of Chromebooks weren’t viable since they were priced around $500, but the newest batch that start at $200 may be tempting to prospective upgraders.

Upgrades were included in Microsoft Corporation (NASDAQ:MSFT)’s announcement that it has now sold 60 million Windows 8 licenses, just three months after the platform launched in October.

Microsoft Corporation (MSFT)

Over the past two quarters, Microsoft has deferred $540 million and $1.2 billion in revenue related to the Windows Upgrade Offer, although the latter figure also includes Windows 8 pre-sales to OEMs. Once the offer closes, the company should be able to recognize some of that unearned revenue that currently sits as a liability on the balance sheet, although Microsoft still typically carries short-term unearned revenue of over $18 billion.

Microsoft is reportedly transitioning its broader upgrade strategy to mimic Apple Inc. (NASDAQ:AAPL), which now offers upgrades for as little as $20 without promotions. Except since Apple integrates hardware and software, it doesn’t rely on consistent software upgrades for revenue like Microsoft does. That may be why the software giant is rumored to be exploring an annual upgrade cycle with incremental upgrades, codenamed “Windows Blue.”

Today’s market for computing just doesn’t have room for a $200 software upgrade.

It’s been a frustrating path for Microsoft Corporation (NASDAQ:MSFT) investors, who’ve watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He’s also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

The article Get Ready for a Windows 8 Price Hike originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!