Microsoft wants to deal with Chromebooks which are available for less price than an average Windows Laptop. Microsoft has decided to start a new lineup of Laptop that will target the 200$ price. This laptops will have the latest Windows OS and will have all the features of a basic Laptop.

When the Worldwide Partner Conference (WPC) in Washington DC, COO Kevin Turner detailed how Microsoft and its OEMs should compete against the growing threat of Google’s Chromebooks. He stated, Windows is better than Chromebooks and added the details of two cheap laptops from Acer and Toshiba. He even mentioned a HP Laptop for about 200$ range but didnt gave any specification on it.

According to a research by NPD a Market Research Company, Chromebooks target at 35% commercial shipment to US in 2014, Commercial Shipments can be defined as Enterprise and Institutional (Education and Government) customers. Chromebooks are rising their popularity daily due to its light OS compared to Windows and consumes less RAM. Which makes the Chromebook an affordable laptop with great Google Services.

Windows on the other hand have never been made for cheap laptops. Windows cannot run on a low end CPU with 1GB or 2GB of RAM. So theres a point on windows side that makes it somewhat non feasable if we talk about Cheap laptop. When the point comes to OEMs like Dell, HP they only get around 5% profit margin with all the licenses. So, if Microsoft is trying to make a laptop for about 200$ then it will be the big challenge towards the company.