In Microsoft's case they have to get into the whole solution business in order to retain margins. Asymco has an excellent article with the numbers: http://www

In Microsoft's case they have to get into the whole solution business in order to retain margins. Asymco has an excellent article with the numbers: http://www.asymco.com/2012/06/20/who-will-be-microsofts-tim-cook/ http://www.asymco.com/2012/06/20/who-will-be-microsofts-tim-... Quote: "So Microsoft faces a dilemma. Their business model of expensive software on cheap hardware is not sustainable. The future is nearly free software integrated into moderately priced hardware. For Microsoft to maintain their profitability, they have to find a way of obtaining $80 of profit per device. "