Is Windows getting more expensive?

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All hot air

While Microsoft would like you to think that Vista is worth the cost, what do you get that differentiates it from the other OS bundles other than the fact it is from Microsoft? All the others have roughly the same, if not MORE capability, don't take away as many rights from the user and guess what, their prices have not risen as high either. Thiers costs vs hardware costs have remained roughly the same over the years at about 1-2% of the hardware.

The whole argument that you are getting more is a smoke and mirrors argument. With Hardware, there is lots of competition and plenty of choices available. Until recently, Microsoft had stamped out most avenues of choice except Apple. Linux only recently has matured to a point where it is a viable choice. But what about OS/2, BEOS and others that came before now? All relegated to the scrap heap not so much by competition, but by now illegal tying arrangements with the hardware vendors.

If there was near the competition in the OS bundling field we would have more choices and far more reliable systems today. Until recently, Microsoft has had NO incentive to improve the security of their products.

And they don't have any incentive to lower the costs either. This is part of what defines a monopoly is they can set the pricing as high as the market will bear, not what is competitive. Otherwise Apples product in the 130 range offers roughly the same features and is considered a better product by many. Bundled Linux boxes are in the 50-60 range. The closest Windows bundle is almost twice that of Apple and their top of the line bundle is almost 3 times the cost.

Again, how can people actually say Windows is not getting more expensive? Only if they have bought into the hype, smoke and mirrors of Redmond. Software, once built is not expensive at all and costs little or nothing to replicate.

Microsoft is looking at a declining market and wanting to make the same profit margins it did back in the halcyon days when it was able to command a premium for every CPU delivered. With the current pricing scheme and the hefty premium it is charging overseas (Do you know the Brits are being stiffed at almost 700$ a pop for Ultimate when none of its expenses are higher to sell it there. All for the cost of a DVD bought in volume).

Microsoft stock took a tumble years ago when investors realized it was highly over valued and it has not risen much since because it is still overvalued. Microsoft wants the stock price to increase, so it raises the price of its software in an effort to boost the stock price, not because the market has gotten more expensive or the salaries of programmers have gotten more expensive. If anything, the programmers salaries have dropped almost 40% over the past 5-6 years.

Sorry, needless to say I don't buy the supposition that Microsofts Vista is priced competitively at all, It is monopoly priced and the last time Microsoft will be able to charge such a hefty premium in the market. In two years time you will find these prices cut in half due to lack of penetration in the market and a growing market for Apple and even Linux. By then competition may finally arrived and we will see prices that are more reasonable and market based, not monopoly based as they are at present.

Posted by: doug@...   Posted on: 02/27/07 You are currently: a Guest | Members login | Terms of Use

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