Microsoft Deploys Cheap Windows Laptops to Fight Google Chromebook

Microsoft has good reason to be worried about Chromebooks, the cheap laptops that run Google’s Chrome operating system.Chromebooks cost a fraction of the price of laptops running Microsoft Windows, making them popular in the education market but also with cost-conscious consumers and buisnesses.MSFT efforts in the past have focused on publicly ridiculing Chromebooks, but Microsoft has now decided to fight fire with fire by pushing cheap Windows laptops into the space.

Chrome OS is Not Windows

The Google Chrome OS is a minimalist affair compared to Windows 8 lack many of the features of Windows does not provide the same support for peripherals and hardware requirements are minimal.In fact, many Chromebooks do not even need the power of a CPU for the use designed with PC and can be both mobile low-power chips to go instead. No software to install packages great since everything can be done for Chromebooks online with Google Docs (or a small application offline version), also come with an (often only 16 GB) small hard drive for storage and a flash unit is also instant "to startup.As result of these features and differences from a traditional laptop Chrome for $ 200 or less can have, thanks to a reduced need for hardware.

Scroogled!

Microsoft off guard by the demand for Chromebooks caught, assuming no one would to a slow start want a device with specifications that had like a 2008-era netbook sought and requires an Internet connection for most tasks.And yes, Chromebooks and take a test, they upscale (Google Chrome $ 1,299 pixel) was nothing. But by 2013, hit the sweet spot manufacturer and inexpensive models like the Samsung  Series 3 Chromebook clone in a virtual appearance to Apple's (AAPL) MacBook Air began to sell like hotcakes.

In fact, Amazon , two of the three best-selling laptops over the holiday season were Chromebooks.Microsoft 's response has been Mock Chromebooks and their shortcomings on his Scroogled website to buy with many links for visitors to easily real Windows laptops.That strategy has had no effect, however, and Chromebooks are only getting more popular.Gigaom 's Kevin C. Tofel reported that Dell (DELL) experienced such high demand for its Chromebooks, it had to temporarily suspend sales to persons to keep up with orders from education by our customers.

Phase 2: Cheap Windows Laptops

With Chromebooks showing no signs of falling out of favor, Microsoft is launching phase 2 of its attack, pushing Windows laptops that compete against Chromebooks on price.The Verge’s Tom Warren reports Microsoft announced a series of new cheap Windows laptops, including a $199 version from Hewlett-Packard (HPQ) that should be here in time for the holidays. Microsoft is cutting its Windows license fees, while manufacturers will be trimming hardware component costs in order to get prices down.The first of these cheap Windows laptops –an Acer priced at $249.99  is already being featured on Microsoft’s website.

Cheap Windows Laptops Could Backfire

The appeal of going downmarket certainly isn’t to juice margins. It’s just a way for Microsoft to fend off competition.But even going cheap and simple is not without its challenges.When Apple cut corners to release a cheaper iMac to compete against the threat of Google Chrome machines in its education market stronghold, it was immediately apparent that the new machine was a step backwards. And that was after making relatively minor cuts like stepping down to a less expensive Core i5 CPU and trimming storage.

Microsoft’s hardware partners are taking a much bigger blade to their cheap Windows laptops. For example, that Acer Aspire E3 currently being promoted on Microsoft’s website pairs a Celeron CPU with just 2GB of RAM and a 1366 x 768 display. This just satisfies Microsoft’s published minimum requirements for Windows laptops run Windows 8.

By moving from Intel’s (INTC) Core series CPUs to Celeron processors that are significantly less powerful and trimming RAM and storage to the bone, there’s considerable risk these Windows laptops will disappoint users who buy them expecting the full Windows experience. Slashing costs by eliminating touchscreen capability also means saying good-bye to one of Windows 8.1’s big talking points: touch input.In short, by trying to race Chromebooks to the bottom on price, Microsoft could end up tainting public perception of Windows, Office and Windows laptops in general, giving those Chromebooks a boost instead of shutting them down.

Will Cheap Windows Laptops Strategy Succeed?

Microsoft has tried to make fun of Chromebooks, and that has work.Clearly, many of whom, the Chromebooks are to buy, do it for the money. By offering Windows laptops inexpensive, Microsoft is likely to win at least some of these people. But the cost equation Chromebook goes beyond the hardware for free and low maintenance and automatic security updates, a large part of the appeal to the education market include applications.

It may be more difficult to overcome than reduce hardware costs after paying for the office and the relative complexity of maintaining a Windows laptop and is a delicate point, as Chromebooks are beginning to infiltrate the enterprise market as well.And if this Window cheap laptops under take this race to the bottom in price can end up damaging the brand of Windows.