5 ms·

You do need to be a little careful looking at netbook market share and size statistics because Microsoft decided they could not cede that market to linux. As a

by gvb 17y ago

You do need to be a little careful looking at netbook market share and size statistics because Microsoft decided they could not cede that market to linux. As a result, they have distorted the market by licensing WinXP (and now Win7?) at an attractive price point and added laptop/netbook size and speed criteria to discourage low end netbooks.

rbanffy 17y ago
"As a result, they have distorted the market by licensing WinXP (and now Win7?) at an attractive price point and added laptop/netbook size and speed criteria to discourage low end netbooks." Thank you, Microsoft, for helping advance computer technology... I don't have to repeat this: http://news.ycombinator.com/item?id=1033708 http://news.ycombinator.com/item?id=1033708
timthorn 17y ago
"As a result, they have distorted the market by licensing WinXP (and now Win7?) at an attractive price point and added laptop/netbook size and speed criteria to discourage low end netbooks." How is selling their software at an attractive price to the market classed as distortion?
- notauser 17y ago
  Because in my opinion it looks awfully close to dumping that is being cross-subsidized by their profitable laptop and desktop monopoly. "Microsoft charges local OEMs $32 for XP Home on netbooks, compared to around $65 for XP Home on desktops. Large OEMs are believed to pay much less." http://www.crn.com/software/212902058 http://www.crn.com/software/212902058
  - timthorn 17y ago
    Surely it is only dumping when selling below cost? I can't imagine that MS is losing money on this. Charging differing prices for different market segments is a reasonable business practice, and it could be argued that Linux is the OS that is distorting the market, seeing that there's no licensing fee at all involved. :)
    - notauser 17y ago
      With software it's really hard to say what below cost actually is. Amortized fixed cost, or just the variable cost? If you are talking about the latter then no, it's probably not dumping. If you are looking at the former I bet it's not so clear cut. WinXP development and all of the associated cost (such as the loss-making products like IE that help keep WinXP in it's market position) would have been pretty expensive - and the expenditure is still going on today thanks to things like security support and IE upgrades.
- rbanffy 17y ago
  "How is selling their software at an attractive price to the market classed as distortion?" Because it stifles competition? Besides that, this arguments ignores the other part: the one in that Microsoft restricts what kinds of netbooks can be built by modulating license price for the machines.

by gvb 17y ago

rbanffy 17y ago

"As a result, they have distorted the market by licensing WinXP (and now Win7?) at an attractive price point and added laptop/netbook size and speed criteria to discourage low end netbooks." Thank you, Microsoft, for helping advance computer technology... I don't have to repeat this: http://news.ycombinator.com/item?id=1033708 http://news.ycombinator.com/item?id=1033708

timthorn 17y ago

"As a result, they have distorted the market by licensing WinXP (and now Win7?) at an attractive price point and added laptop/netbook size and speed criteria to discourage low end netbooks." How is selling their software at an attractive price to the market classed as distortion?

notauser 17y ago
Because in my opinion it looks awfully close to dumping that is being cross-subsidized by their profitable laptop and desktop monopoly. "Microsoft charges local OEMs $32 for XP Home on netbooks, compared to around $65 for XP Home on desktops. Large OEMs are believed to pay much less." http://www.crn.com/software/212902058 http://www.crn.com/software/212902058
- timthorn 17y ago
  Surely it is only dumping when selling below cost? I can't imagine that MS is losing money on this. Charging differing prices for different market segments is a reasonable business practice, and it could be argued that Linux is the OS that is distorting the market, seeing that there's no licensing fee at all involved. :)
  - notauser 17y ago
    With software it's really hard to say what below cost actually is. Amortized fixed cost, or just the variable cost? If you are talking about the latter then no, it's probably not dumping. If you are looking at the former I bet it's not so clear cut. WinXP development and all of the associated cost (such as the loss-making products like IE that help keep WinXP in it's market position) would have been pretty expensive - and the expenditure is still going on today thanks to things like security support and IE upgrades.
rbanffy 17y ago
"How is selling their software at an attractive price to the market classed as distortion?" Because it stifles competition? Besides that, this arguments ignores the other part: the one in that Microsoft restricts what kinds of netbooks can be built by modulating license price for the machines.