Star Microsoft To Discount Windows XP for ULPCs
Linked by Thom Holwerda on Mon 12th May 2008 17:40 UTC
Windows Last week, we reported on a peculiar price difference in Australia between the Linux and Windows versions of the Asus Eee PC 900, the new model in the Eee line. The Windows model was 50 USD cheaper than the Linux model - the Linux model did have a bigger hard drive, but interestingly, the version with the smaller hard drive was not available as a Linux machine. This gave rise to speculation that Microsoft had been putting pressure on Asus to favour Windows XP over Linux. It appears Microsoft's assault in this segment of the market goes deeper than just Asus and the Eee alone.
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RE[6]: "Assault?"
by Thom_Holwerda on Tue 13th May 2008 09:48 UTC in reply to "RE[5]: "Assault?""
Thom_Holwerda
Member since:
2005-06-29

1. We don't know the internal costs of XP however they sell the current OEM for over $100 AUD. (nearer 150 I think) so if $32USD is not less then cost then there profit margins are HUGE. (Note you can only support profit margins like that if you have a monopoly)


I think XP's production costs are the cost of pressing CDs, more or less, at this point. The investment in XP and 2000 will have already earned itself back about a million times, so I don't think USD 32 is below production costs at all.

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