During the earnings call, Microsoft CEO Satya Nadella spoke about the Windows OS and the first-party devices and he said that Microsoft is approaching the Windows OS business with a bold, challenger mindset and pushing both the product and business model forward. He highlighted the fact that Windows licenses are zero dollars for any OEM building a device less than nine inches and also added a low-cost Windows offering with Bing integration for OEMs. These changes are expected to bring Windows tablets and clamshells at lower price points. Microsoft is also optimistic about first-party hardware given the early signs from Surface Pro 3’s performance in market. In the coming year, Microsoft will streamline the next version of Windows from three Operating Systems into one, single converged Operating System for screens of all sizes and also Microsoft will unify our stores, commerce and developer platforms to drive a more coherent user experiences and a broader developer opportunity. Our approach to first party hardware going forward is clear – at times we’ll...

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