After Microsoft reportedly lowered the cost of Windows 8 for low-cost tablets and other sub-$250 devices, the company is believed to be attacking Google at the root. Microsoft is expected to begin offering Windows Mobile free of charge to manufacturers in India, one of the largest smartphone markets in the world.
Pendola characterizes the move as more desperation than aggression. I'll happily concede and offer a suggestion that a management finding complacency will have a difficult time finding profits. Once again, I point to BlackBerry as exhibit A of what not to do when you're the leader.
With a 3.2% mobile platform market share, Microsoft has the desperation or luxury to shift from monetizing because there isn't another choice, to monetizing smartly based on real competitors that will take market share quickly. Pendola quotes an article that depicts margins getting squeezed, but as popular the conjecture may be, it's difficult to actually find evidence to support it. A glance at the profit margin chart illustrates why.