August 24, 2003

Notes: Microsoft Price Discrimination

Interesting. But what is the price of Windows in the U.S.? Really? How much do businesses and OEMs pay?

Gartner: Microsoft cuts Windows price to $40 in Thailand - Computerworld: In a move that could lead to lower prices for Microsoft Corp. software in other countries, the company has cut the price of its Windows operating system and Office applications suite in Thailand, according to a report released by market research firm Gartner Inc. "Microsoft -- in response to a Linux threat -- recently reduced pricing to $40 for an Office and Windows package it offered as part of a government initiative in Thailand," the report said. "Microsoft may offer a similar package in China as an incentive to keep Chinese enterprises using its products," the report added. Microsoft officials couldn't immediately be reached for comment. While Gartner didn't disclose the specific Linux threat faced by Microsoft in Thailand, Hewlett-Packard Co. is selling Linux-based laptops in Thailand for $450 as part of a program initiated by the country's Information, Communications and Technology ministry to make affordable PCs available in the country. Those laptops went on sale in May, and HP has described demand as overwhelming.

The Microsoft price cuts in Thailand represent a steep discount compared with the U.S. pricing for Windows and Office. The full version of Windows XP Home retails for $84 in the U.S., according to PCWorld.com's Product Finder. The full version of Windows XP Professional retails for $130.95 and Office XP Professional sells for $254, according to the site...

Posted by DeLong at August 24, 2003 01:02 PM | TrackBack

Comments

As far as I know, the price offered to the larger PC manufacturers ranges from $40-$60 for XP Home, depending on volume. I'd bet it goes as low as $25 for favored firms like Dell, but I don't expect to find out anytime soon - it has to be Dell's single most tightly held secret.

The prices listed by Gartner for Windows XP at retail are very, very wrong. A full retail copy of Windows XP Home goes for $199 rather than $84, and an upgrade copy costs $99. A full copy of Windows XP Professional sells for $299, not $130.95, while the upgrade version will set you back $199.

I suspect that Gartner, in listing prices obtained from PCWorld's Product Finder, has actually listed the prices of 2nd hand copies of these items. The problem with this is that thanks to product activation, when you buy a copy of Windows XP from someone else, you run the risk of Microsoft refusing to activate your installation, if the person who sold you the copy never de-activated any prior installs. As I've yet to hear of anyone who even knows how one might go about such a task, let alone having actually done so, I tbink it safe to say that the secondary market for copies of Windows XP is essentially non-existent (other than for the gullible or the technically illiterate.)

Posted by: Abiola Lapite on August 24, 2003 02:26 PM

Perhaps now Microsoft will have to tone down their absurd claims about how much money piracy is costing them.

Posted by: Tom Slee on August 24, 2003 06:16 PM

China recently passed legislation requiring government agencies to purchase only domestically-developed software. Any bets against Microsoft upgrading them for free?

Posted by: trevelyan on August 24, 2003 08:47 PM

OEM prices are, indeed, very, very low. I don't know what the Winders + Office bundle costs the big Wintel hardware purveyors, but $40 certainly seems a whole lot closer than the full retail prices.

my story: the computer on which I'm typing this was a new-economy giveaway (thanks, Etrade!) for which I paid shipping and tax. since I didn't want the copy of Windows bundled with the PC, I called the vendor and told them I refused the terms of the EULA (shrinkwrap license, which directs you to contact the vendor if you refuse its temrs). after some hemming and hawing, they took back Windows and refunded me $50, so my guess is that that was the OEM price for Windows for small vendors back then.

in re: secondhand XP copies and activation, being a Debian geek, I know nothing of how to get around activation -- but I know plenty of Winders people who have pirated XP and Office installations. I think only corporations, including OEMs, are good citizens about buying MS product.

Posted by: wcw on August 25, 2003 02:36 PM

“...but I know plenty of Winders people who have pirated XP and Office installations.”

Wow, aren’t you ashamed of knowing so many thieves? Let’s call these folks what they actually are---crooks! I hope that they are eventually arrested or sued, and pay a serious price for their criminal activity.

“Perhaps now Microsoft will have to tone down their absurd claims about how much money piracy is costing them.”

Absurd claims? Software piracy has cost Microsoft and even very small one person companies a lot of financial grief. Do you enjoy new and improved software programs? If so, why are you discouraging their creativity?

Microsoft must compete for business throughout the world. This company has every right to decide to lower its prices in particular instances. What in heaven’s name does that have to do with the issue of piracy? Your line of reasoning leaves much to be desired.

Am I knee jerk defender of Microsoft? Nope, I strongly believe that it is guilty of antitrust violations. I just try to be as fair and objective as possible.

Posted by: David Thomson on August 25, 2003 08:15 PM

David Thomson:

Geez son, I think you missed your calling. I laughed all the way through your post but after rereading it became clear you were, um, at least, um, intending that the, um, "text", as it were, was intended, it seems, um, "sincerely"; to be interpreted by the reader, as, um, "sincere".

So I'm thinking here, for the good of us all, but firstly in importance and congeniality for the purpose of obtaining just remuneration for your efforts: Why don't you collect up all these posts to the good Doctor's blog, and paste 'em all up into a nice portfolio[1], and trot them around to various marketing firms as a plenitude of examples of how you can shed all sense in the pursuit of a higher ideal. I suggest you astonish them by prodding them to challenge you with an impromptu idea on which to riff. Say castor oil. Of course everyone knows that eating something totally benign like castor oil might heal tumors of the brain and gout besides? You could be rich! After all, castor oil is fair and balanced!

[1] They're art, after all.

Posted by: Russell L. Carter on August 25, 2003 09:17 PM
Post a comment