Are the $200 Windows Laptops a Challenge to Google Chromebook?

We already know that there was a time when Microsoft had a monopoly over the PC market with its Windows operating system (OS). But somehow the giant didn’t show up the required innovation and let its competitors take away its PC business. 

The company responded very late to the newly introduced tablets that are nipping up the overall PC market. When the PC market was sinking, only Microsoft laptops were primarily maintaining the glory of the computer giant. But then Google came up as a strong competitor introducing Google Chromebooks, which are low-priced laptops. 

While Google was eating up the high-end market of Windows laptops, their Chromebook laptops started stealing the low-end market. To fight back, Microsoft started working not just on its high-end professional range of devices but also on its low-end Windows devices. Thus, it introduced sub $200 Windows laptops to attract the customers with a budget device. However, the USP of Microsoft is to provide the users not just a low-priced device, but a machine that is more of a computer.

Microsoft enters the low-priced laptops domain 

Microsoft recently introduced two sub-$200 Windows laptops. The most powerful and talked among these are Hewlett-Packard's HP Stream 11, which costs $199. The device is a copy of Chromebook laptop in many ways. 

 

Stream is an 11.6" inch, elegant and thin laptop with a long battery life. It runs on Windows 8.1. However, the device is built to use the cloud but it is not as reliant as Chromebook while using on cloud.

Just the way Google's Chromebook is designed to use the Chrome suite of productivity apps, Windows sub $200 laptops are also meant to work with the online version of the Microsoft Office. Moreover, to lure the customers, the company has introduced many interesting deals on laptops. For instance, for $69.99, Microsoft is offering Office 365 Personal and Windows store gift card for $25. 

The tough competition by Chromebook

Although, Windows-based laptops are popular since long but in the domain of sub-$200 devices, but Chromebooks are giving tough competition to Microsoft. Since its emergence, Chromebook laptops have successfully garnered a good share of the market. Refer the table below:

	2012	2013	2014
Mac OS	24.5%	24.2%	26.8%
Chrome OS	0.2%	3.3%	4.5%
Windows OS	75.2%	72.3%	68.4%

Steadily and eventually, the market is expanding. Chrome OS laptops cater to that segment of customers, which Microsoft had left ignored until recently. So, how tough is the completion for Microsoft and will the company be able to catch-up.

Looking at the plunging Windows OS market share and steadily growing Chrome OS share, the competition appears to be tough. According to NPD (a research company), in 2014, Chromebook sales went up by 32%.

Will Microsoft be able to bounce back

  

However, there is still room for Microsoft to be positive because when the company introduced sub $300 laptops ranging from $271 to $242, its market share increased by 37%. That emphasizes the impact of price on customers’ purchasing behavior.

So, now as Microsoft has introduced sub $200 laptops with specification and features comparable to the Google Chromebook, there are chances that people will consider buying them. Moreover, people have remained Windows fan for many decades. 

The sub $200 Windows devices have some cutting edge advantages that will sure lure the customers. For instance, Chromebook is almost entirely dependent on the Internet for its operation, but for sub-$200 Windows machines, it is not necessary, although it benefits from being connected. Furthermore, as mentioned above Microsoft has thrown many attractive deals on laptops. 

With all these backups, the computer giant might leave Google the only advantage of grabbing the market from those customers, who religiously dislike Windows 8. But to change the attitude of such customers, Microsoft now has the more intuitive Windows 10 designed for both touch and non-touch devices.