Linked by Thom Holwerda on Wed 7th May 2008 18:11 UTC, submitted by Dan Warne
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Member since:
2007-02-17
OK, it looks like my evidence for "predatory pricing" just got a whole lot better.
First, a definition of "predatory pricing":
http://en.wikipedia.org/wiki/Predatory_pricing
"Predatory pricing (also known as destroyer pricing) is the practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors."
Then, a look at emerging news:
http://www.computerworlduk.com/technology/hardware/laptops/news/ind...
"Microsoft plans to offer PC makers steep discounts on Windows XP Home Edition to encourage them to use that OS instead of Linux on ultra low-cost PCs (ULPCs). To be eligible, however, the PC vendors that make ULPCs must limit screen sizes to 10.2 inches and hard drives to 80G bytes, and they cannot offer touch-screen PCs.
The programme is outlined in confidential documents that Microsoft sent to PC makers last month, and which were obtained by IDG News Service."
... an excellent match, by any definition.
Microsoft: "If it is a 'ULCPC', here is our software virtually for free so that our competitor doesn't get a toehold".
It is interesting that an arbitrary breakpoint on the size of the hardware it runs on means that Microsoft suddenly feels bound to offer the same software for a huge discount.
Edited 2008-05-10 13:59 UTC