The problem for Microsoft is that lowering costs is the only strategy that makes sense, given how the market is changing. This decision was forced by competitors of the company: Unable to compete with Apple at the high end, Microsoft will now take on Android and Chrome OS for the masses instead.
Paul Thurrott isn't happy.
I can see how that makes sense for the PC market (maybe incl. devices down to the form factor of Ultrabooks)), but for Windows Phone it seems they can actually place some high end, premium price products in the market.
What's not yet really clear is how the perceived failure of Windows RT will be addressed. I could see a chance for MS if some Ultrabooks become lightweight and small enough to compete with larger tablets from the upper end while phones become big enough to compete with tablets from the lower end.
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