Lenovo's Says RT Tablets Up To $300 Cheaper Than Win 8
Lenovo Group Ltd. (992), the world's second-biggest maker of personal computers, said new devices based on Microsoft Corp. (MSFT)'s Windows RT software will cost $200 to $300 less than competing products using Windows 8 software.
Context & Ripple Effects
Lenovo comes into the Windows 8 launch window from a position of strength: it said in July 2012 it is on track to overtake Hewlett-Packard as the world's biggest PC maker this year, posted strong results in May, and puts the $1,399 ThinkPad X1 Carbon Ultrabook on sale August 21. A March report that it planned to be first to market with a Windows 8 tablet remained unconfirmed, but it did demo a ThinkPad tablet running the new OS in June.
The pricing claim lands awkwardly for Microsoft: Lenovo, its largest OEM partner by volume trajectory, is telling buyers up front that the ARM-based Windows RT version of the OS will run $200-$300 below comparable Windows 8 hardware. The story traveled widely — pickups at Computerworld, AllThingsD, Engadget, PC World and others — and Computerworld's version notes Acer's spokeswoman insisting Windows RT is still alive in Acer's plans.
First-order effects
- Tablet buyers heading into the Windows 8 launch face a visible two-tier price sheet, with Lenovo positioning Windows RT as the value tier while its x86 line — the X1 Carbon at $1,399 — holds the premium end.
- Microsoft's own Surface RT now has to be priced against partner hardware that undercuts comparable Windows 8 machines by $200-$300, sharpening the channel conflict between Microsoft-as-retailer and its OEMs.
Second-order effects
- Rival OEMs are forced to declare a position on RT rather than default into it — Acer has publicly reaffirmed its commitment, while any partner that skips RT pushes those customers toward Android tablets instead.
- A gap that wide invites buyers to treat Windows RT and Windows 8 as different products, which complicates every OEM's marketing and forces Microsoft to defend what 'Windows' means across both tiers.
Third-order effects
- If the pattern holds, Windows hardens into an ARM budget tier and an Intel premium tier, eroding the single-platform compatibility promise that has anchored Microsoft's PC licensing business — and giving Microsoft a reason to reconsider what it charges for each version.
The trend: PC makers are using pre-launch pricing to split Windows 8 into a cheap ARM tier and a premium Intel tier, with Microsoft's own Surface caught between its partners and its retail ambitions.