Drivel: While this articles isn't entirely interesting, it does bring up an interesting point of Microsoft not being able to move software due to falling prices of hardware. In this scenario, hardware manufacturers will no longer be able to absorb the price of Microsoft's software because it will represent too large of a percentage of the total unit price. I think we are close to seeing this happen today. For example, Gateway is offering a $599 computer with a 1.2GHz Celeron chip, 128MB of RAM, a 20GB hard drive, and a CD-RW drive with Windows XP pre-installed. All of the software on this machine represents about $100 of the total price. That's 16.7% of the total price. This has to be eating into the per unit margins. I would guess that as this percentage gets closer to 20% you will see the computer makers begin to adopt other strategies. This is pure economics. They have to do something. All of the legal battles with Microsoft are only buying them some additional time.
Tiemann Takes the Stand. The big guys are trying to end the bullying of the biggest guy, but perhaps Microsoft's undoing will be simple economic theory. [Linux Journal] 10:08:30 AM
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