Microsoft has made Windows Phone free for all devices (mainly smartphones and tablets) who have a display which is 9inch or smaller, this is done in an effort to encourage smartphone manufacturers to create more devices running Microsoft’s mobile operation system Windows Phone 8.1 which now can be sold for less since they won’t have to pay a fee for every device they sell.
With the new version (which Microsoft calls “Windows for Internet of Things”) they are expecting to increase their market share as Microsoft is struggling to compete with Google’s Android.
So how will Microsoft make money if they give their operation system away for free? This free windows version currently only applies to users which have use a device with a display 9inches or smaller (tablets and smartphones) and the company is expecting to generate more revenue from its cloud based storage service OneDrive and apps like Office since now manufacturers don’t have to pay for a Windows licence they can make devices cheaper and this could encourage users to spend it on for example Microsoft Office to which Microsoft makes more profit for every sale.