Windows is too expensive
Microsoft’s profit margins on Windows are the envy of the world but can it keep up the very high premium prices that it charges? With the hardware of a powerful PC costing as little as a few hundred dollars, how can Microsoft justify charging almost as much for the operating system? It’s not that these really high prices are needed for Microsoft to make a nice profit. Margins on sales of Windows run around 80%. Other companies should be so lucky. Such juicy margins are the result of Microsoft’s near monopoly position but in today’s climate they may be hard to maintain.
The popularity of netbooks forced Microsoft to keep Windows XP alive and price it a good deal lower than the company liked. But now Microsoft is doing its best to force Windows 7 on netbooks at a relatively high price. Some are talking about the Microsoft tax. Steve Ballmer has even basically admitted to a bait-and-switch tactic with netbooks. Netbook or larger PC, it is very likely that a big chunk of the price of any PC will be the cost of Windows.
The high price of Windows is especially felt in less-developed countries where a copy of Windows costs a week’s or even a month’s wages. The result is rampant piracy and that brings big security problems. Microsoft’s anti-piracy methods have resulted in large numbers of insecure Windows systems that in turn help infect the Internet with malware. In China, for example, a majority of Windows systems use pirated copies. And who can blame them? As Reuters reports:
Research firm IDC estimates about 80 percent of software sold in China was pirated last year. While that figure is falling, it is still double the global average and about four times that of developed markets such as the United States and Japan.
“The big issue that is driving piracy in China today is price,” said Matthew Cheung, an analyst at Gartner, another research firm.
“If you’re trying to sell a program that costs 2,000 yuan to a student living on 400 yuan a month, that’s simply not going to work out for most consumers.”
Price resistance may not be confined to less-developed countries. At PC World, Jeff Bertolucci writes about the $120 price for a Windows 7 Home Premium upgrade:
Will home users pay that price? I’m betting they won’t. True, some Microsoft diehards will line up on October 22 to grab the first copies of Win 7, but most consumers will spot the price tag and walk away.
As much as I like what Microsoft’s done with Windows 7, the improvements don’t warrant such a steep fee, particularly for home users upgrading from the much-maligned Vista. And XP users? Well, migrating to Win 7 is a complex chore that requires a clean install. You may have to upgrade your hardware too. Add up the cost of Windows 7, plus more RAM and maybe a new graphics card, and a new PC starts to seem a lot more affordable
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I hope Steve Ballmer reads this.
Dear Steve,
It was interresting to read today where for a couple of days Microsoft had offered Windows 7 to customers for $50.
Wow, I will hop onto the bandwagen and download Win 7.
HANG ON A MOMENT, I cannot see anywhere at all, where Australia is mentioned in this amazing offer, many other countries are mentioned.
Crumbs Steve, what happened to those in the land down under, we missed out.
Now Steve, has Microsoft given any thought to Pensioners and Invalid Pensioners, lets take the Invalid Pensioner and pick on them.
The Invalid Pensioner does not “choose” his or her “title”.
This is tacked on to them because of an illness, in many many cases, these people become invalids, not of their chooseing, it is circumstances of ones life that does this.
Invalid Pensioners range in age from young kids to gerry acttricks old farts like me
In many many cases, they have been invalid pensioners for many, many dacades, they in almost every instance, have to have huge medications (EXPENSIEVE) they all DO NOT HAVE HOLIDAYS, they simply cannot afford them.
Many times they get just the bare essentials to live on.
Many cases we all have secondhand clothing, or hand me downs.
Some need special aids or equipment just to exist, let alone have a good time like the “normal” people.
Most people SHUNN invalid pensioners, so does Microsoft do this? I hope not.
Steve, as you are the big wigg at microsoft and are able to create policy, would you please consider letting only Invalid Pensioners have a copy of Windows 7 to be put on their own computers?
How about when Windows 7 opens up it displays a screen saying WINDOWS 7 for Invalid Pensioners, compliments of Microsoft.
or if that is too much of a shock, how about, give invalid pensioners a Microsoft voucher, for invalid pensioners to take to their doctor to vouch that that person is indeed a invalid pensioner so they can get a install CD of windows 7.
We are proud people, and will offer to pay “something” if Microsoft would like to come to the party, it wont be much, but at least it would cover the cost of the windows 7 CD and packageing, mabe someone might be able to throw in a few bob for the postage also.
Now, come on everyone reading this out there on the web, if you have a heart, help out the invalid pensioners, write a letter to Steve Ballmer expressing how you all feel about “improoving” the plite of the invalid pensioners, and suggest Unkle Steve Ballmer give invalid pensioners a copy of Windows 7.
I thankyou all, with my toungue in cheek.
Regards
Jim Dudgeon
Invalid Pensioner
Australia