Microsoft's new verification system for Windows 8 - OA 3.0 - which will add complications toward the upstream ODM's production lines and relatively generate significant extra cost, is raising controversy between notebook ODMs and brand vendors as to which side will pay the increased cost, according to sources from PC ODMs.

For the OA 3.0, Microsoft plans to pre-install the Windows 8 operating system into PC's BIOS and will have consumers key-in the authorization key to activate the software through an Internet connection and will completely abandon its previous method of using a COA label.

The sources pointed out that the current procedure of installing the Windows operating system into a hard drive is much easier for their assembly lines, and a production line can easily manufacture 1,000 PC units in a very short time. However, if Microsoft changes its install method for Windows 8, it will require a longer time to install as each machine will need individual time to attend, while sticking a COA label onto a PC will help technicians identify the machines that have already been installed with an operating system. Without the label, it could easily create installation overlap and generate higher cost and yield rate issues to ODMs as Microsoft is charging the fee through the number of times of installation.

In addition to longer production lines, notebook ODMs will also need to pay extra to provide their technicians training.

The sources also revealed that the ODMs believe Microsoft is playing a two-faced game with the notebook players - on the one hand, the software giant has told notebook ODMs that brand vendors will pay all the increased cost, while they told the brand vendors that ODMs will be responsible for the cost. However, since there is still not yet a firmed result about which side will handle the cost, the two side have been having a controversy about the issue.

Source:digitimes