Author: Eugene Nalimov
Date: 22:06:59 08/10/04
Go up one level in this thread
Nice and very emotional post. Unfortunately, it is based on the wrong facts. *Both* Dell and Toshiba *are* selling computers without Windows preinstalled. For example, you can buy Dell systems with preinstalled Linux from http://www1.us.dell.com/content/products/compare.aspx/precn_n?c=us&cs=&l=en&s=bsd&. I did not search Dell site, but I was told Dell is selling Linux notebooks as well. Second, Dell is selling computers without *any* installed operating systems. Yes, agreement with Microsoft forces Dell to attach *some* OS to the shipped box. So Dell just ships those systems with FreeDOS -- see, for example, http://www.winnetmag.com/Article/ArticleID/26268/26268.html. Third, according to the Wall Street Journal, average OEM pays Microsft $45 for copy of Windows. Disclaimer: I don't know if it is true or not, I just giving you some numbers from the article. Link is here: http://online.wsj.com/article_email/0,,SB107869473053748560-H9jgINllah3nputbHyGba2Am4,00.html. I am not sure if the article is in the free access, so here is relevant part: --------------------------- One can learn a lot about the computer industry by looking at the breakdown of manufacturing costs in an average desktop PC, as compiled by iSuppli Corp., a market-research firm. Excluding labor and shipping, and leaving out the costs of a monitor, keyboard or mouse, the typical desktop PC these days costs the Dells or the H-Ps of the world roughly $437 in parts. The biggest portion of that -- 30%, or $134 -- goes to Intel for a Pentium processor. The disk drives, including whatever CD or DVD is installed, cost around $104; the RAM memory is $54; and the remaining hardware items -- power supply, case, circuit boards -- total $100. The final 10%, or $45, goes to Microsoft for the Windows operating system. --------------------------- So to summarize: (1) I am not sure why you was not able to buy Dell PC without Windows, but that is definitely not Microsoft fault. Dell is shipping such systems. Maybe it does not shipping such systems in your country, but it's Dell's decision. Agreement with Microsoft allows Dell to sell such systems. (2) I don't know where you get number "$350 for 2 copies of Windows XP". If you really paid Dell that money, than (according to Wall Street Journal), Dell gave $90 to Microsoft, and kept $260. Once again -- it was Dell's decision to sell you only PC with Windows, and "$350 for 2 copies of Windows XP" is Dell's price, not Microsoft's. (End of hard facts -- my speculation begins): As long as you will buy systems from Dell even when they come with Windows that you don't need, Dell will sell you *only* systems with Windows. Based on numbers from you and WSJ, each such system brings Dell extra $350/2-$45 == $130 profit. In normal situation, part of those $130 would be spent on the support costs. In your case, no support required, so $130 is pure profit. Thanks, Eugene
This page took 0 seconds to execute
Last modified: Thu, 15 Apr 21 08:11:13 -0700
Current Computer Chess Club Forums at Talkchess. This site by Sean Mintz.