Microsoft is gearing up to increase prices of its consumer and enterprise based products in India by 10-25% starting this November, reports The Economic Times. With this, users will witness an increase in pricing of its widely used products such as MS Office (Word, Excel, and PowerPoint etc) and Windows server operating system.
This is the first time Microsoft is increasing prices on its products after offering them in rupee rates in 2011. As of now, Microsoft usually sells products at 35- 40% discount in India, compared with Europe, US and other developed markets.
The report in Economic Times quotes Microsoft’s India Head of Marketing and Operations Floris van Heijst
“The rise in prices is linked to the release of several new Microsoft products. India has a highly mature IT market and we are sure it will absorb our new prices. We are in the process of talking to our partners and analysts.”
Interestingly, Microsoft has just been overtaken by Google in market capitalization as there is a perception that the search giant, with a strong foothold in mobile is positioned to deliver better results in the future. Recently, Google also raised prices for its online storage services. The increase in price could be an effort by the technology major to boost its revenues through software and operating system packages like Windows and Office and catch up with Google’s growth. In 2011, Microsoft earned $30billion from these 2 programs; however, Google amassed $ 30 billion from its mobile based businesses alone (except search, which is its core business).