Market research firm claims that Windows continues to have a hefty price tag

Aug 7, 2013 08:40 GMT  ·  By

Microsoft continues to be blamed for the collapse of the PC industry after a new report revealed another decline in desktop and notebook shipments.

Research firm Canalys revealed that the PC market fell 7.4 percent in the second quarter of this year, while notebooks dropped by 13.9 percent during the same period.

One of the main reasons for the decline, says Canalys, is the hefty price tag of Windows, as PC manufacturers around the world cannot make their products more affordable and thus boost sales.

Microsoft must deal with this problem as soon as possible, the company said, especially because the tech giant continues to bet big on desktop PCs and laptops.

“Component pricing has been an issue, particularly with multi-touch screens, though scale economies make this less of an issue as demand increases,” said Tim Coulling, Canalys senior analyst.

“The price of Windows itself is a contributing factor and one that Microsoft must address as a matter of urgency. Its PC OEM partners are in an increasingly difficult position and consolidation in the PC market is inevitable within the next 12 months.”

Back in March, we learned that Microsoft was preparing a major Windows discount supposed to support partners in their efforts to bring more affordable devices to the market.

Unconfirmed reports indicated that the Redmond-based tech giant was planning a $20 (€15.5) discount for OEMs building 11.6-inch and below netbooks, while those making notebooks, tablets, and hybrids featuring displays smaller than 10.8 inches were said to get the same $20 discount plus a free Office 2013 license.

At the same time, Microsoft is currently working with partners for new Windows 8.1 devices expected to hit the market at about the same time as the stable version of the OS update.

The company has already explained that Windows 8.1 is likely to spawn a new wave of devices, including tablets and hybrids, most of which are very likely to feature touchscreens.