Microsoft (MSFT) Offers Incentives to Streamline Tablet Manufacturing

June 1, 2011 7:52 AM EDT
Microsoft (Nasdaq: MSFT) is likening chipmakers and PC producers to a school dance: making them chose a partner and stick with that partner.

According to Bloomberg, the Redmond, WA-based maker of Windows and Office has requested chipmakers and PC manufacturers partner up and stick with that partner in order to speed the process of bringing Windows tablets to the market.

Microsoft will offer special incentives in exchange for the partnerships, which are not mandatory. Notably, Bloomberg reports incentives may include features which ensure "the device runs better or lower prices for the software."

With only two versions of Apple's (Nasdaq: AAPL) iPad on the market today, it might make sense for Microsoft to exert more control over the manufacturing process. Sometimes more choices can lead to lower quality or indecision by consumers.

Chipmakers will also be able to select a second PC manufacturer to create a "clamshell-style" notebook computer which uses Windows OS, sources said.

Stocks that may move on the news include: Intel Corp. (Nasdaq: INTC), Advanced Micro Devices Inc. (NYSE: AMD), Nvidia Corp. (Nasdaq: NVDA), Qualcomm Inc. (Nasdaq: QCOM), ARM Holdings (Nasdaq: ARMH), and Texas Instruments Inc. (NYSE: TXN).

The limit is only for the new mobile version of Windows, and will not carry over into traditional PCs.


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