Microsoft has cut the price of Windows to $0 for manufacturers to use on phones, devices with screens smaller than 9 inches, and the "Internet of Things" — products such as smart TVs and wearables.

By making Windows free on those devices, Microsoft will be in a much better position to compete with the likes of Android — which now dominates the smartphone market, and is rising fast in tablets — mainly because it costs manufacturers nothing to use. Windows usually requires paying Microsoft a licensing fee.

For phones, the benefits of the price cut are obvious, although a little late in the game. For smaller-screen devices, it puts Windows tablets in a better position to compete, and may help various companies produce better competitors to the Google Chromebook, which has been a popular choice with schools and other organizations that don't need laptops with lots of computing power.

The Internet of Things is a nascent field, but it's beginning to take shape — most recently with Google's announcement of the Android Wear operating system for wearables. The Microsoft equivalent will the Windows for the Internet of Things, which the company showed a preview of at its Build Developer Conference.

According to Microsoft's Windows on Devices website, the first SDK for the emerging platform will come in late spring 2014.

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