4 ms·
Because in my opinion it looks awfully close to dumping that is being cross-subsidized by their profitable laptop and desktop monopoly. "Microsoft charges loca
by 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 agoSurely 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 agoWith 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.