Microsoft (MSFT) Windows 8 OEM Prices Hit the News; Goldman Comments, Says Surface May Come In-Line w/ iPad

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Earlier, licensing fees for Microsoft's (Nasdaq: MSFT) Windows 8 operating system to OEMs were revealed. Shares of Microsoft are down 1.8 percent on the session today, possibly as a result, or possibly of overall market pressure.

If you haven't clicked the link, here's the skinny: Windows 8 for $60 to $80, Windows 8 Pro with Office for $80 to $100, and Windows RT for $50 to $65.

Goldman Sachs issued a note with some comments on the pricing scheme by Microsoft, highlighting three key takeaways:

1. The firm likes the narrow margin between Windows 8 and Windows 8 with Office pricing, setting the way for potentially larger ASPs;
   
   
2. Windows RT is also bundled with Office. That and the price difference for Intel (Nasdaq: INTC)-based machines suggests higher attachment rates than initially expected. If this expected increase to MBD revs will help offset lower Windows RT pricing is yet to be seen; and
   
   
3. On the Surface tablet, Goldman sees retail pricing for Windows RT-based tablets at $700 to $800 for 32-GB and 64-GB machines, respectively, as well as $800 to $900 for Windows 8 Pro tablets for 64-GB and 128-GB machines, respectively. Despite the higher price outlook, Goldman thinks Microsoft might price the tablets lower in order to simply gain market share.
   
   Given that, Goldman assumes about $100 in lower pricing for each model. This makes the Surface price structure bracket Apple's (Nasdaq: AAPL) iPad in 32-GB and 64-GB, at $600 and $700, respectively.

Goldman still rates Microsoft at Neutral, with a price target of $34.

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