Why Microsoft Corporation (MSFT) Is Letting Everything Go Free of Cost


Microsoft Corporation (NASDAQ:MSFT) is not only changing its working dynamics, it is also largely shifting its business model to freemium. Apparently, it looks insane when Microsoft says that even pirated copies of Windows will be able to upgrade to Windows 10 for free. But a closer look reveals that Microsoft Corporation (NASDAQ:MSFT) has nothing to lose by doing so. In fact, it is increasing its software sales and span of hold in the industry. But the company will have to cater for the losses it got because of sudden changes last year.

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An article in the Economic Times said that Microsoft Corporation (NASDAQ:MSFT) is taking some radical steps that were never seen in the company before. It announced that it is cutting the licensing fee for all the manufacturers for Windows devices for smaller screens. Microsoft Corporation (NASDAQ:MSFT) Windows for PC revenue tumbled to $16.9 billion from $17.6 billion last year, thanks to its decision to cut fee for all the Windows laptops under $250. Microsoft Corporation (NASDAQ:MSFT) is taking all these steps in order to tackle the low-end PC market competitors.

Microsoft Corporation (NASDAQ:MSFT) relies heavily on the Enterprise customers, who pay the company for upgrades for their software in their machines. But the source quoted Al Hilwa, an analyst from IDC, who thinks that it’s just a matter of time when the Enterprise customers will stop paying Microsoft Corporation (NASDAQ:MSFT) for the upgrades. This is because the increasing rates and discrimination Microsoft Corporation (NASDAQ:MSFT) is practicing at wider level.

Microsoft Corporation (NASDAQ:MSFT) is gearing up to face this challenge. The company is opening its platform for all the competitors like Google, Apple and Facebook.

As of 30 June 2014, Ken Fisher’s Fisher Asset Management hold around 17.7 million Microsoft Corporation (NASDAQ:MSFT) shares.

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