Roy Schestowitz wrote:
> The Microsoft Invincibility Myth
>
> ,----[ Small fragment ]
> | The leaves Microsoft with an increasingly unattractive market; the
> | majority of desktop PCs are competing fiercely to deliver low prices. As
> | PC prices drop below $500, it becomes increasingly difficult to hide a
> | substantial Windows license fee in the mix. That means Microsoft will havet
> | o lower their prices or face the threat of losing those low end desktops
> | to Linux.
> `----
>
> http://www.roughlydrafted.com/RD/Home/C91CCB7E-A668-4B0A-ABB6-98840AC8A317.html
Interesting article, but very inaccurate (and lots of opinions).
First of all, he mentions that only Windows and Office make money.
Wrong.
Both MSN and Mobile products made a profit as well (and revenues jumped
tremendously for the first 9 months of the fiscal year).
Also, the business unit revenues jumped a lot as well - and although
there is a small loss, this will turn positive probably next year
(according to *real* analysts).
Finally, the profits on entertainment (XBOX) are supposed to show a
loss on the hardware for the first few years - this is entirely
expected. All XBox 360 reviews that I have seen have shown it to be a
stunning success - and I'll be getting one myself now that Halo 3 has
been announced :D
Also, the author claims that Apple is taking from the 'cream of the
crop' and relegates PC sales to only the cheap stuff. That does NOT
affect MS revenue, as the Windows license costs the same for a 3000
workstation or a 299 Dell special. Also, the Windows license for a OEM
machine is *much* less than retail pricing - probably on the order of
30 bux for Home version - not much in other words. Even if Linux is
free, the cost of installing it on the hard drive *and* the cost of
supporting it (yes if they sell it - they gotta support it) is going to
be very expensive for them. Can you imagine a help desk person trying
to help someone running *linux* ? LOL God help them.
There *are* other factors to consider.
Finally, about the IPod. Yes, MS' answer to the IPod will probably be
lame. However, the fact of the matter is that the IPod *is* a
commodity - and someone will surely come out with something that is
better soon.
Remember the Sony WalkMan? "ummm... what ?"
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