Microsoft To Lower Prices On Handsets

(RTTNews) - Microsoft has announced that consumers can expect prices of tablets and smartphones to drop below $200 this year. The news came from Nick Parker, the VP of OEM partners, at Computex, Asia's largest computing show:

"We'll reach price points that are very industry competitive for 7, 8, 10-inch devices. They will really surprise you. Last year, we were in the 3s, 4s, 500 dollars. This year, we'll be 1s, 2s, 3s."

The cost of Windows Phone handsets is set to drop below $200 in certain markets, he added.

Microsoft's current tablet competition includes the wildly popular Apple iPad, and lower cost Android tablets. The Google Nexus 7 starts at about $200, while the Amazon Kindle Fire 7 retails for $139.

MS launched the latest version of the Windows Phone OS in late 2012, but it's been slow to catch on among consumers. In the fourth quarter of 2013, the Windows Phone had a 3% share of the smartphone market. Google's Android dominated with 78%, while Apple's iOS came in second with 17.6%