We all know that Microsoft doesn't actually make computers. It makes the software, and then lets an almost infinite amount of manufacturers build computers that can run its software. These manufacturers often make a mess of things, delivering computers filled to the brim with crapware. What would happen if Microsoft made computers? Well, for one, they would be void of crapware. Two, they would help users install the software they want before leaving the store - including software from competitors.
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Member since:2009-08-18
"Uhm, OEMs do not pay 50 or 100 USD - it's more like 15 or 20 USD. Those 50 and 100 USD are for individual OEM licenses - HP and the like get massive volume discounts."
Thom, what JoeBuck was saying is that the margins on those PCs are so razor thin that even paying $15-$20 per license massively cuts into any semblance of profit these companies manage to eek out of sales of PCs. Remember, the average PC sold from most PC manufacturers has a margin of only 3-4% and even less than 1% on their lowest-end PCs.
If these companies did away with the ultra low end and not sell any PCs under $600 then it might make it more reasonable to license without including crapware.
But the PC business is a race to the bottom. So it's unlikely to change.
Edited 2009-10-29 18:26 UTC
Member since:2005-06-29
I know, I was just correcting him on his figures.
On top of that, I doubt the margins are that low. I'd guess they're more in the 5-10% range.
Poof: Acer says its margins are 10%.
http://in.biz.yahoo.com/091022/137/bauelg.html
Edited 2009-10-29 18:30 UTC
Member since:2005-11-18
Member since:2008-08-25
Member since:
2005-06-29
Uhm, OEMs do not pay 50 or 100 USD - it's more like 15 or 20 USD. Those 50 and 100 USD are for individual OEM licenses - HP and the like get massive volume discounts.