

Microsoft plans to use Windows 7 to raise netbook prices - colinprince
http://www.appleinsider.com/articles/09/07/31/microsoft_plans_to_use_windows_7_to_raise_netbook_prices.html

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TallGuyShort
I really can't take anything Steve Ballmer said there. He claims:

>> any changes in reported share numbers are just "a rounding error." Share
gains by Apple "cost us nothing,"

but then he says:

>> "Hopefully, we’ll take share back from Apple. But they still sell only 10
million PCs a year, so it’s a limited opportunity."

They haven't lost market share to Apple, but they're going to take it back?
That makes no sense. And his attempts to make their market share sounds good
are laughable.

And can anyone explain how raising netbook prices ISN'T going to result in the
same situation cited in the article, where Acer/Linux netbooks undercut Vista?
Seriously - if there is an explanation, please explain it, because I don't
understand it. To me it just sounds like a random decision because they're
desperate for something to say to their stock holders.

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SwellJoe
Good luck with that Microsoft. I don't think Microsoft quite groks that prices
_always_ go down on commodities, assuming there are many competing products
and improving efficiencies in manufacturing.

While regular folks still prefer the OS they know over Linux, they will begin
to think more and more about it when the price difference is 20%, or 30%, or
40% of the purchase price (as it will be on netbooks). Since the importance of
Office and other stuff that requires Windows is declining every day, and
nobody is gaming on netbooks, I just don't see how they can have any
confidence that they can hang on to that market while charging full price for
Windows.

