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Bigger flaw in the analysis.
We're talking about the per-copy price of Win7 as if it were a fixed amount, which it probably is - but the tacit assumption is that the price of the netbook it's running on is *also* a fixed price across all netbooks, which it isn't.

Netbooks range from $199 to $799. If Windows goes from $15 to $55 (the worse case scenario), then it adds about $40 to the price. On $199 that's significant, but on $799, it's not. So this really only affects the cheapest models.

But it's not even that simple. Price alone is not what decides which model a consumer will purchase. If it was, everyone would be buying the $199-$299 Linux based models. However, that's simply not the case.

In fact, Linux models already tend to be around $25 - $50 cheaper for essentially the same device and people are still choosing Windows over Linux in huge numbers.

It's not Linux Win7 will be competing against, it's WinXP and once Win7 ships, WinXP won't be on the table anymore. Which means there's be a short transition period when people will see WinXP models slightly cheaper than Win7 models, and then the choice will go back to Windows or Linux (unless Apple pops up with something).

The REAL question is going to be "Win7 Starter or Win7 Premium?"
Posted by: TheWerewolf   Posted on: 06/16/09 You are currently: a Guest | Members login | Terms of Use
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Bigger flaw in the analysis.  TheWerewolf | 06/16/09
Agree - the real competitor in netbooks is XP  BillDem | 06/17/09
You said ...  mwagner@... | 06/17/09
reason for choosing Windows over Linux  tmsbrdrs | 06/17/09
Linux and MacOSX are free from ...  mwagner@... | 06/17/09
Now why do you think that is?  Wintel BSOD | 06/17/09
Ideology and facts  tonymcs@... | 06/17/09
I'm not too worried about the future  Wintel BSOD | 06/18/09
I Totally agree  An Old Man | 06/19/09
Why XP netbooks get a hard drive, not SSD...  Wolfie2K3 | 06/17/09
"Who is going to tell Wal-Mart they have to stock it?"  Tynach | 06/17/09
Linux is not visible to the consumers  InnocentBystander | 06/19/09
What should MS do?  JT82 | 06/16/09
I thought we were talking about OEM pricing (nt)  Michael Kelly | 06/16/09
I agree, totally...  SimonUK2 | 06/17/09
Vista "Upgrade" Pricing ...  Johnny Brandie | 06/17/09
I'm with you  mietz | 06/17/09
If you are running Vista now, there is no ...  mwagner@... | 06/17/09
VISTA sucks  ozzy_66_62000@... | 06/17/09
Well, sure, there is that reason.....(NT)  WiredGuy | 06/17/09
In early 2007, Vista was still pretty lame ...  mwagner@... | 06/17/09
Vista still has issues that 7 dosn't  Breetai | 06/17/09
My dad's Viista machine...  Wintel BSOD | 06/17/09
Your dad's BSOD  rtk | 06/17/09
You're dad's BSOD  Tynach | 06/17/09
Why bother  Wintel BSOD | 06/18/09
Agree it was lame  mrohwohlt@... | 06/17/09
Not totally true  LarryLaser | 06/17/09
vista sucks  jdyl | 06/17/09
Vista sucks, next time it works  pkrdk | 06/17/09
Win2K - never needs a fixpack??? check your facts!  robtec88@... | 06/17/09
Re: Win2K - never needs a fixpack??? check your facts!  Wood3 | 06/17/09
Could you PLEASE...  His_Shadow | 06/18/09
Completely Agree  James29UK | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  Louis Ross Focke | 06/16/09
What Windows Tax  mailbox01 | 06/16/09
Contradiction...  storm14k | 06/16/09
optioins  Louis Ross Focke | 06/16/09
Tech Savvy ...  Johnny Brandie | 06/17/09
Not to nit pick....  SpikeyMike | 06/17/09
Nit pick all you like ... but think first though ...  Johnny Brandie | 06/17/09
options...  bartle.berlin@... | 06/17/09
because...  Wintel BSOD | 06/17/09
become user friendly to the average person  pkrdk | 06/17/09
You sure don't need to be tech savy to use  mjolnar@... | 06/17/09
to build or not to build that is a question  mrohwohlt@... | 06/17/09
Win OMe  BOSS4908 | 06/16/09
re: Win OMe  n0neXn0ne | 06/16/09
"The vast majority of people buy windows because they like it."  Dave32265 | 06/16/09
Im sorry but just were are thoses facts  Stan57 | 06/16/09
They have a history of this  Wintel BSOD | 06/17/09
Sorry - Bad Thinking  lmenningen | 06/17/09
It is a fact  Wintel BSOD | 06/17/09
Here's an example of how much people like Linux:  de-void | 06/16/09
Linux Netbooks marketshare is fraud  st1ng | 10/21/09
wrong  pkrdk | 06/17/09
Re: Wrong  st1ng | 10/21/09
No windows tax  eb276 | 06/16/09
choices  Louis Ross Focke | 06/17/09
Since the MS-DoJ consent decree was ...  mwagner@... | 06/17/09
Supply and Demand drives the market.  Louis Ross Focke | 06/17/09
Market demand is a perfect example of "money talks" (nt)  sjbinaz | 06/21/09
From Dell website configuring Dell Mini  mrohwohlt@... | 06/17/09
Really?  Wintel BSOD | 06/17/09
And this "finding of fact" led to the ...  mwagner@... | 06/17/09
Well then you should welcome a new investigation  Wintel BSOD | 06/17/09
The major OEMs do offer non-Windows ...  mwagner@... | 06/17/09
Really?  rdawson@... | 06/17/09
OK I've posted this in another reply (most of it)  mrohwohlt@... | 06/17/09
We don't have sufficient information to make such a determination.  ye | 06/16/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  scottbakertemp | 06/16/09
is there anything stopping OEM?  Louis Ross Focke | 06/17/09
Security Support  Looks Confused | 06/17/09
I think so yes.  Looks Confused | 06/17/09
Bottom line, what will the market support?  No_Ax_to_Grind | 06/16/09
Your right in a way, but I think the real answer is here  lightingrod | 06/16/09
I agree, bottom tier builders have a problem  No_Ax_to_Grind | 06/16/09
I agree again, I've always looked at kit/Gamer/box builders as .....  lightingrod | 06/16/09
I think the marketplace would support much higher prices.  enduser_z | 06/16/09
Windows 7 pricing - Linux gets more attractive  Rex.Ballard | 06/16/09
wait a second...  rtk | 06/16/09
How do you know?  Wintel BSOD | 06/17/09
Well, easy really.  rtk | 06/17/09
3D Linux Performance on Netbooks  Looks Confused | 06/17/09
Winning Pricing Strategy wink  johnfenjackson@... | 06/16/09
Microsoft should do what it always has and always will do  Confused by religion | 06/16/09
Microsoft goal is to make software cost more then hardware  Randalllind | 06/16/09
Do you really think that either OEM's or Microsoft have....  lightingrod | 06/16/09
If VISTA wasn't so bad...  John McElhenney | 06/16/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  -PC- | 06/16/09
WIN7 Pricing  John McElhenney | 06/16/09
MS is so last century...  prof123 | 07/21/09
Win 7 will win at the end  doejohn00 | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  Randalllind | 06/17/09
WIndows 7 - Windows any version  step2000 | 06/17/09
Your numbers are off  comp_indiana | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  jgkov | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  jskidd | 06/17/09
Free Upgrade for Vista Users  seaniepie | 06/17/09
M$ ... Please Take Note!  Johnny Brandie | 06/20/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  varick | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  varick | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  amasys | 06/17/09
Look at Apple and Linux  fabior | 06/17/09
expensive for a service pack if you ask me  doejohn00 | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  dippleydokus | 06/17/09
Win7 = Vista v1.0 GA  daragh | 06/17/09
Don't forget Android  daragh | 06/17/09
The challenge for Microsoft ...  mwagner@... | 06/17/09
Win 7 Cost Basis?  lmenningen | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  Alan(UK) | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  sfaid | 06/17/09
What they SHOULD do...  Thunderbuck | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  jy.durocher@... | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  ShowMeGrrl | 06/17/09
Windows becomes greedier, they should cut back  dano11 | 06/17/09
The Right Thing  zclayton2 | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  8Limes | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  pkrdk | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  Don Giovanni | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  davisthediver@... | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  erniem1970@... | 06/17/09
Free for Vista users...  mikifinaz1@... | 06/17/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  simmondia | 06/18/09
Windows is a giant computer worm.  as901 | 06/19/09
If MS bothered to stick their head out the "window"  kcredden2 | 06/20/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  manofnight | 06/21/09
whatever it is...its too much  btek@... | 07/13/09
Charge what the market will bear.  No_Ax_to_Grind | 07/21/09
RE: Windows 7 OEM pricing: What could and should Microsoft do?  mark_sheppard@... | 11/06/09

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