Windows 8 touch screen devices to make up 80% of major PC markets by 2014: Microsoft

Microsoft has claimed that the demand for touchscreen Windows 8 devices would "sky rocket" to make up to 80 per cent of major PC markets by 2014.

Speaking in a `Future of Touch Panel' keynote address at Computex today, Microsoft's GM of OEM engineering Christian Cocks announced that with the help of Windows 8.1 and industry partners, touchscreen PCs would become an expectation of end users in the same way they were on smart phones.

"Today, if you look at touch penetration across major markets, it's probably somewhere in the low teens. But over time, in the next couple of months, we see [touch] penetration rates sky rocketing across the world by this holiday," Cocks said.

"We will see touch enabled Windows 8 devices expanding into emerging markets in 2014, with some larger markets such as the US in the 60-80 per cent range, where touch is the expectation not the exception to a PC sale".

According to Cocks, touch display PC systems' low market penetration tended to be supply constrained due to yield restrictions and was thus premium focused, with most in the $700 and above range.

Meanwhile, Microsoft yesterday confirmed what had been suspected by analysts that it had cut prices of Windows 8 and Windows RT licences to hardware partners building smaller-sized tablets as a way to cut device prices and increase sales.

Analysts questioned whether the cuts were large enough to dramatically lower tablet prices and spur sales, and were sceptical that Office would be a big draw for consumers, who purchased the bulk of tablets.

According to the Wall Street Journal, the head of Microsoft's OEM division Nick Parker said the company had extended its discount to also include Windows RT, the spin-off that failed to gain traction in the market.

The licensing price cuts would apply to OEMS only for tablets for screen sizes from 7-inches and 10.1-inches. Microsoft declined to put a figure to the amount of the discount.

Along with the discounted licences for Windows 8 and Windows RT, Microsoft was also bundling Office Home & Student 2013 with Windows 8 on the smaller tablets, according to Tami Reller, the CFO of the Windows group.

The bundles would also be included in new devices running Windows 8.1, the update for both Windows 8 and Windows RT that Microsoft will launch later this year.

The Wall Street Journal was the first to report that Microsoft had kicked off licence discounts with OEMs and would bundle Office with Windows 8. Acer, on Monday, unveiled the first smaller-size Windows 8 tablet, the 8.1-in Iconia W3, which includes Office Home & Student 2013 and is being offered at starting price of $379, in a confirmation of the accuracy of the Journal's March report.