Microsoft may be experimenting with a free version of Windows 8.1

Microsoft currently is on the bottom rungs of the smartphone market. With PC sales declining and Microsoft’s latest Windows 8 being a flop, Microsoft has to whip up something fast . Real fast.

According to the Verge Microsoft is currently developing a Windows 8.1 with Bing version that will retail either for free or for low cost. It would also be an encouragement for users to upgrade from Windows 7 .

Microsoft is facing fierce competition with Tablets and also Chromebooks, which run the free Google Chrome OS. If Microsoft does make such a Windows version, it may prove profitable.

As Microsoft will bundle key apps and services in the low cost/free version, it will generate revenue by the usage of it’s products and services.

Rumor has it that Microsoft is planning to reduce licensing fees for Windows for sub-$250 devices.

Microsoft had recently revealed the upcoming Windows Phone 8.1 update and also some tidbits about Windows 8.1 .

Details about Windows 8.1 will most probably be revealed at Microsoft’s BUILD developer’s conference in April

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