The Challenging Key to Windows 8's Success

By Evan Niu, CFA – May 9, 2013 at 8:00PM

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Microsoft's ambitious new Windows platform is off to a slow start, but hardware vendor ASUS is hoping to bring down price points to spur sales. However, that goal is easier said than done.

So far, Microsoft (MSFT 0.37%) Windows 8 isn't faring so well in the PC market. However, hardware partner ASUS recently reiterated its confidence in the platform and outlined that its strategy to pursue greater adoption will entail lowering price points below $300.

That would be higher than the $200 popular tablets from Amazon.com (AMZN -1.64%) and Google (GOOGL 0.55%), yet lower than the $500 that Apple's (AAPL 1.27%) iPad starts at. The challenge lies with competing with Android rivals, as that platform has inherent pricing advantages due to its open-source nature. Microsoft relies on licensing fees, while OEMs will inevitably pass those fees on to consumers in the form of higher prices.

In the video below, Fool contributor Evan Niu, CFA, discusses the challenges that the software giant and its hardware partners face.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Amazon.com, Apple, and Google. The Motley Fool owns shares of Amazon.com, Apple, Google, and Microsoft. 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.