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The article claims: "One reason all PC's that come preinstalled with a Microsoft operating system is cheaper than regular laptop is that Microsoft subsidizes th
by ganeumann 13y ago
The article claims: "One reason all PC's that come preinstalled with a Microsoft operating system is cheaper than regular laptop is that Microsoft subsidizes the cost of the hardware."
I had always thought that PC makers paid Microsoft for Windows. The article claims that, instead, Microsoft pays the PC makers to install Windows. I don't see how this could possibly be true if most copies of Windows are sold pre-installed on PCs.
- ams6110 13y agoI've never heard that Microsoft pays OEMs but they certainly do give them a discounted price. Also it is my understanding that they do have some contract terms that either forbid sale of the same hardware with other OSes preinstalled or forbid sale at a lower price with other OS or no OS. This is all from years ago, I don't know what terms are these days. Obviously Dell, HP, etc. do have a few preinstalled Linux systems in their catalogs now.
- ChuckMcM 13y agoI too don't think this is accurate. What Intel and Microsoft have done is contributed marketing support dollars which, from a pure business analysis point, might be considered part of the cost of the system but it isn't what you or I would consider subsidizing the hardware. In marketing support programs Microsoft pays for a television advertisement for your product (very expensive) which points out how great it is because uses Microsoft Windows. Similarly with the Intel inside advertisements.
- naner 13y agoMicrosoft charges for OEM licenses. PC manufacturers, however, will include other software with Windows for a fee (e.g. Imagine Adobe pays Dell for Adobe Reader to be included on Dell consumer systems). It is also plausible that Microsoft has a patent agreement with PC manufacturers so that they have to pay Microsoft a fee to ship systems with Linux installed. I know we've seen similar situations with companies that run Linux servers or sell Android devices.
- Zigurd 13y agoWhat they probably meant is that Windows is a profit center for HP because of the 3rd party crapware/bloatware loaded with Windows. They don't have similar deals for Linux, and that would probably chase off their Linux customers.