Author: Frank Phillips
Date: 09:15:28 08/11/04
Go up one level in this thread
On August 11, 2004 at 01:06:59, Eugene Nalimov wrote: >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. >--------------------------- Windows here is the order of 100 ukpounds to buy OEM. I wanted to buy a laptop from our local computer shop without Windows, but there was no way they would 'remove' Windows (actaully not install it) and certainly would not reduce the price. On a 1200 ukpound item I found it astonsishing that they would rather I walk away than remove the OS. (I told them I could never agree to the licence. Not sure I even understand it.). MS is not particularly a technical issue for me. It is cost; and of course the licensing agreement. MS can only maintain this sale model of profit from their two main products (OS plus Office) for as long as they maintain their monoply, which explains a lot - I believe. > >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
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