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Microsoft Corporation (MSFT) Counters Chromebooks With Cheap Notebooks

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Microsoft Corporation (NASDAQ:MSFT) is gearing up to compete against Google Inc. (NASDAQ:GOOG)’s Chromebooks with the launch of two inexpensive notebook computers, before the end of the year. A Taipei research firm reports that the Window-based PCs will be ready for shipping by mid-year, specifically targeting the education sector as well as other wider consumer market.

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Early reports indicate that the notebooks will come in at 11.6 inch set to run on Intel’s low-cost Trail-T CR processors. Microsoft Corporation (NASDAQ:MSFT) has reportedly handed Taiwan Elitegroup Computer systems the responsibility of manufacturing one of the notebooks that is to be used primarily for educational purposes. This model is to go on sale for $179.

Microsoft bets on education

The education purpose notebook is to be sold through the same sales channels currently being used for Classmate PC, which is also being manufactured by ECS for Microsoft Corporation (NASDAQ:MSFT). The wider consumer market model is to be built by China-based 3NOD Group and will be the cheaper of the two going for $149, to be sold via brand vendors.

Microsoft Corporation (NASDAQ:MSFT) is taking a keen interest on the two notebooks as the company looks to offset Google’s dominance of the space. The search giant has reportedly taken notice of the high costs of its Chromebooks and is reportedly eyeing the possibility of adopting solutions from Chinese chipmaker Rockchip Electronics. The focus at the moment for Google is to try and reduce the hardware costs, which should have an impact on the overall price

Emerging market dominance

Google and Microsoft Corporation (NASDAQ:MSFT) are planning on expanding their presence in emerging markets where prices for such gadgets remain a key aspect of the business. The search giant is planning to launch Chromebooks going for as low as $179 all specifically targeting emerging markets; the new models are to come in three sizes of 11.6, 13.3, and 15.6 inches. The three models signal Google’s ambition of targeting emerging markets with vigor.

Prices for notebooks should continue dropping going forward as companies move to appeal to those in the education industry and the wider public market. On Tuesday’s stock market, shares in Google closed trading for $548. Shares in Microsoft finished yesterday trading for $40.65.

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Viraj Shah

Viraj loves to write and express his views on anything related to Finance, Crypto, or Fintech. He has been covering Finance & Crypto for more than five years now. He likes Tesla. He also writes on Healthcare, and Technology among other stuff.

1 Comments

  1. I personally bought a HP Stream the other day. Has a Celeron N2840 chip and 2GB RAM but only a 32 GB SSD drive. With Windows installed and the restore partition that leaves you with around 8 to 10 GB of storage left. Its not my primary notebook I have a Macbook Air but I needed something inexpensive to run Windows OS. The Steam certainly works well and having owned a Samsung Chromebook my comparison to that is positive towards the Stream. The real problem I see is the storage space as Windows will undoubtably bloat as updates and features go forward. Not to mention that almost any program these days is rather bulky and where Windows fails and Chrome OS succeeds is that Chrome OS devoted much of their apps to a web based system so much of the bulk stays off the local PC. I’m am not knocking the experience at all of Windows on such a cheap hardware configuration. I am simply stating the obvious that Windows in generally potentially has more of a demand for storage then Chrome OS. Yes, you can use a SD card on the Stream but only limited basis and the restore partition cannot be deleted. So feeing up space that way is out. Everything under the hood is soldered to motherboard, so upgrading is also out. Schools may find both the Chromebook’s and these cheap Windows notebooks limiting in their own ways. In many ways its a step back in order to afford more devices per student. The old desktop PC’s were far more durable and flexible then these new devices.

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