Google and Microsoft Fight: Consumers Win as PC, Tablets Prices Tumble

Google has brought out its new variants of the Chromebook at a price as less as $149, which has given a strong competition to giants such as Microsoft.

The Chromebook is not equipped with a hard disk. Instead, it makes use of the new technology of 'Cloud' Computing' and the laptop mostly uses internet to get all its work done. All the Google applications such as Gmail, You Tube, Google Drive, and so on are being installed and used on this gadget. The Chromebook is also intervened by advertisements, which acts as a major source of income for the company. the newest versions are made by Hisense and Haier. Both the Hisense and Haier models have 11.6 inch screens, 2 gigabits of memory and run on Rockchip processors. The Hisense machine promises up to 8.5 hours of battery power per charge while Haier is touting up to 10 hours of power per charge on a battery that can be removed for easier replacement. Hisense's Chromebook can be ordered beginning Tuesday at Walmart.com and Haier's version can be bought at Amazon.com.

In the summer, Asus and Google will start selling a new Chrome device that will provide people a cheaper way to upgrade an old PC. The device, called the Chromebit, is a stick loaded with an entire operating system that can be plugged into any HDMI port. The Chromebit's price hasn't been set, Google says it will cost less than $100.

However, this low pricing of laptops by Google has paved way for an equivalent price drop by other players to meet the markets demand and expectations.

"We cannot be happier that Microsoft is helping drive down the prices of PCs," said Caesar Sengupta, Google's vice president of product management for Chromebooks. "If Microsoft is reacting to (Chromebook's low prices), that's fantastic. We love it."

Microsoft has reacted very aptly by dropping the prices of its Surface. The Microsoft Surface 3 is priced less than the new Chromebooks, while featuring many user friendly and wide range of uses, which makes computer-users interface more flexible and smooth.

The Microsoft Surface runs on a regular version of Windows 8.1. Microsoft has used a lightweight version called RT in its cheaper tablets. The Surface 3 also has a USB port, a feature that distinguishes the Surface line from most rival tablets.

The cheaper version of the Surface Pro 3 sells for $499, compared with $799 to $1,949 for the higher-end models. The discounted version has a slightly smaller screen - 10.8 inches rather than 12 - a slower processor, and less flexible kickstand - just three angles rather than unlimited positions.