Microsoft VP Nick Parker:

“We’ll reach price points that are very industry competitive for 7, 8, 10-inch devices,” Parker said, speaking to reporters after his keynote at Computex, Asia’s largest computing show. “They will really surprise you. Last year, we were in the 3s, 4s, 500 dollars. This year, we’ll be 1s, 2s, 3s.”

Not sure if this is a move to move inventory through the pipeline or an attack to build market share from the low end.

Microsoft’s share of the tablet market was less than 4% last year, according to research firm IDC. Parker declined to say if the free offering of Windows is a permanent strategy for the company, or if it will return to charging [higher prices] next year.

But he emphasized that Microsoft had other ways to make money besides Windows licensing fees, such as the “freemium” model of its Skype video chat service and the launch of Office 365, which allows users to rent the software for a year instead of buying it.

Make better products. Start there and you’ll find your path.