Microsoft Limits Capabilities of Low Cost PCs
Microsoft will be offering steep discounts to PC manufactures that will use Windows XP in ultra low-cost desktops and notebooks. However, the discount comes with limitations, as Microsoft will be placing hardware restrictions for these manufacturers.
Microsoft’s goal is to limit hardware capabilities of upcoming generations of ULPCs so they do not reduce the demand for modern PCs with capable hardware. The limitations allow “PC makers to offer low-cost alternative, and it prevents eroding of pricing and margins in the mainstream OS market,” said analyst Roger Kay, EndPoint Technologies Associates president.
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