Analyst: Microsoft is considering a cut in Windows RT licensing fees

How can the Microsoft Surface RT better compete with low priced Android tablets? Consider that the Google Nexus 10, which has the highest resolution 10 inch screen in the industry, can be purchased starting with a price about $100 less than the Surface RT. Brian White of Topeka Capital Market has told his clients that Microsoft is considering a cut in licensing fees in Windows RT which would make Windows RT tablets cheaper. White believes that with the licensing fee reduction, Windows RT tablets could see a price cut in the range of 35% to 40%. That should make those tablets much more competitive.

Last week, Microsoft made some changes to its Windows 8 hardware certification guidelines that could allow manufacturers to build tablets using Windows RT but with significantly lowered resolution requirements. This would allow manufacturers to build a 7 inch Windows RT tablet. But that happens to be exactly where most of the low priced Android tablets live. And not only do slates like the Google Nexus 7  and the Amazon Kindle Fire live in that zip code, the Apple iPad mini and it's 7.9 inch screen would be considered competition in that area as well. Perehaps the crew in Redmond should just see how well the licensing fee cuts work on the 10 inch tablets before targeting those 7 inch slates

source: BGR