Reports: Microsoft Slashing Windows 8.1 OEM Prices

Would you be willing to trade in your Google (GOOG) Chromebook or Apple (AAPL) iPad for a much cheaper Microsoft (MSFT) Windows PC? That is the question the technology giant is looking to answer, according to rumors that Microsoft plans to slash prices on its latest OS by as much as 70 percent.

Bloomberg reported last week that several sources close to Microsoft have said the company soon will drop its price to a mere $15 for manufacturers that license and preinstall Windows 8.1 on devices that sell for less than $250. Microsoft previously had been asking manufacturers for fee of $50 for each pre-installed license of its operating system.

According to the sources, all devices that retail for less than $250 will be eligible for the discounted Windows 8.1 install, including tablets, traditional PCs and notebooks. The article suggests that Microsoft could be looking to entice users of increasingly popular Google and Apple smartphones and tablets to come back to the Windows camp.

While Microsoft has not confirmed the rumors, neither has it denied them. Financial reports from last year showed that the computer industry posted its biggest annual decline on record, according to Bloomberg, which is a strong indicator that Microsoft is willing to try something a little more dangerous to bring former customers back into the fold.

Slow sales for Windows 8 and overall drops in global computer sales in 2013 also support the theory that Microsoft needs to do something differently. A recent study by Canalys also found that tablets were the No. 1 selling devices in the world, bolstering a predicted decline in traditional PC and notebook sales. NPD also predicted that the rise in popularity of tablets through 2017 would lead to more affordable laptop and ultrabook prices. If Microsoft confirms the reports of its OS price drops, this theory may very well be coming to fruition sooner rather than later.