Linked by Thom Holwerda on Sun 7th May 2006 19:17 UTC
Law and Order Sometimes, the smallest of things can amaze me. I'm a sucker for details, which probably lies at the base of my slightly obsessive-compulsive traits of keeping things organized, tidy, aligned, and neat. It's great to see some companies are suckers for details too. Unless the details just become too insignificant. Note: Sunday Eve Column. Short, this week, though.
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RE[4]: I don't agree
by sappyvcv on Sun 7th May 2006 22:26 UTC in reply to "RE[3]: I don't agree"
sappyvcv
Member since:
2005-07-06

Have you ever heard of inflation?

If they weer charing $15 for Win 3.1 and $30 now, that's offset easily by the differences in costs (e.g. employees wages that have gone up).

Reply Parent Score: 1

RE[5]: I don't agree
by jonsmirl on Sun 7th May 2006 22:40 in reply to "RE[4]: I don't agree"
jonsmirl Member since:
2005-07-06

And just exactly what do Microsoft's production costs have to do with with the CPI? Top of the line PC's cost $10,000 in 1990. With inflation they should cost $25,000 now, right? They cost $1,000 instead. The CPI (inflation measure) is an average of many inflation rates some positive and some negative.

Microsoft's production costs as a percentage of revenue have been dramatically falling over the last 25 years. None of those cost reductions have been passed onto the consumer. In a normal competitive industry (like the PC industry) all of these cost reductions would have been passed on.

In a competitive industry profit margins naturally fall over time. Microsoft's profit margins have been rising with time. Their OEM margins are over 90%. In a normal industry a competitor would say I can live with 70% margins and enter the industry. But in this case they can't.

Reply Parent Score: 1

RE[6]: I don't agree
by sappyvcv on Sun 7th May 2006 22:44 in reply to "RE[5]: I don't agree"
sappyvcv Member since:
2005-07-06

1. Do you have anything to backup the production costs thing?
2. You are forgetting initial costs and R&D.

Reply Parent Score: 2

RE[5]: I don't agree
by dylansmrjones on Tue 9th May 2006 15:54 in reply to "RE[4]: I don't agree"
dylansmrjones Member since:
2005-10-02

30$ *LOL* .. try with 300$. At least that's the price in DK. And the price is going up, more than the inflation (which is btw. much lower in DK than in the Euro-countries).

Reply Parent Score: 1

RE[6]: I don't agree
by sappyvcv on Tue 9th May 2006 23:00 in reply to "RE[5]: I don't agree"
sappyvcv Member since:
2005-07-06

We were talking about OEM. Please try to following along.

Reply Parent Score: 0