Windows 8 tablets to go smaller

BANGALORE: Top gadget makers will soon roll out smaller tablets running on Microsoft's Windows 8 operating system, hoping that the cheaper devices will appeal to buyers who have so far not shown much interest in the larger, expensive 10-inch versions.

The 7-inch segment, which accounts for a bulk of tablet sales in the country, is currently dominated by devices that run on Google's Android. Companies such as Acer, Asus, Dell and HP are expected to launch their versions of the 7-inch Windows tablets in India over the next few weeks.

"The key question is whether Microsoft can convince large organisations to take a look at these tablets," said Faisal Kawoosa, analyst at market research firm Cyber Media Research. "Now, that would be a game-changer."

Redmond, Washington-based Microsoft launched Windows 8 last October after realising that traditional PC users — a segment that it monopolises — were increasingly shifting to touch-based portable devicessmartphones and tablets. However, the new operating system has made little headway in the Indian tablet market,over 70 per cent of the devices sold in 2012 were based on Android. About 2.6 million tablets were shipped within India last year, with South Korean firm Samsung and home-grown company Micromax leading the market, according to IDC.

Among operating systems, Apple's iOS had about a 12 per cent market share, while Windows 8 and Blackberry had close to 2 per cent. Smaller devices Acer, Asus and HP are expected to be priced in the range of Rs 10,000 - Rs 20,000, compared with 10-inch tablets that typically sell at between Rs 35,000 and Rs 50,000. Low-cost 7-inch tablets made up for close to 78 per cent of total tablets shipments in the final quarter of 2012, IDC data showed.

Though Windows 8 comes with a common touch-based interface designed for tablets, smartphones and laptops, the software has so far seen low penetration in the Indian tablet market. Analysts blamed the high price of Windows-based tablets, compared with those that run on Android and iOS for lacklustre sales. Acer India's marketing head S Rajendran said the company will soon launch the world's first small-sized tablet based on Windows 8 in India. Asus, Dell and HP declined to comment.

Last month Microsoft's chief operating officer Kevin Turner said his company was working on a new range of devices at lower price points. IDC analyst Manasi Yadav said Microsoft may seek new partnerships with Karbonn and Micromax—who price tablets more competitively. "So far, Windows 8 tablets are priced above Rs 30,000, which is a negative in a India,the starting price of tablets is about Rs 5,000."