Continuing the recently started trend at Microsoft to be a bit more aggressive towards the competition, Brandon LeBlanc wrote on the Windows Experience Weblog about why Windows is such a huge success on netbooks compared to Linux. Also, what is up with that story on AppleInsider about Microsoft offering Windows-7-to-XP downgrade rights? Is that really so special?
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Member since:2006-03-23
You're assuming that netbooks are the totality/majority of system sales. And while what you've said might be true in the ultra-cheap netbook market, consumers have proven time and time again that cost isn't everything (just take a look at ipods vs. the world).
I doubt we'll see sub-$100 netbooks simply because of the high cost of mfg and slim profit margin. Besides that, utility starts to plummet when you drop below 9" screens, which is crucial in bringing the price down. MS can always compete on x86 in developing markets by offering their OS for free.
At the end of the day, MS makes money from OEMs and businesses, not home consumers buying RTM copies of Windows, or consumers buying cheap netbooks. It's in their interest to give those copies away for free to make their profit system self-sustaining.
Member since:2007-01-13
Do you live in the USA? The other 95% of the world's population just don't care what Americans do. For most people in the rest of the world people even $50 is a lot of money - a weeks pay for a doctor in Africa. So of course they will try and save as much money as possible.
American companies just don't get it. The US carmakers still don't understand that they will soon be out of business. In a decade Steve Ballmer will be ranting when MS market share has fallen to less 50%.
Member since:
2007-01-13
Commoditisation will destroy the MS business model. It has already destroyed the Unix workstation market.
What happens in 10 years time when a netbook using a non-x86 CPU costs $49 from the local supermarket? Will MS and other software makers spend a fortune porting to the new architecture? Will an OEM pay $10 for a Windows 9 license which will add another $50 to the retail price due to the multiplier effect. Or will they run a customised OSS solution? It is pretty obvious.
If you look at the history of business even the biggest corporations eventually shrink or die. MS is particularly vulnerable because it is basically a single product (windows/office) company that has saturated the market. The alternate product is free.
Lets imagine the situation of Coca Cola if a similar and equally palaatble Open Source Cola was given away absolutely free. Sure people would still drink Coke but eventually Coke would lose market share to OSC. Kids would drink OSC rather than spending their pocket money. In poorer countries people would drink OSC because Coke was too expensive. Long term the Coke business would become totally unprofitable.