Originally Posted by ADRz

Originally Posted by bobkn

Originally Posted by whs

If MS has to rely on the new PC sales, they will go broke. The OEMs get the OS for pennies. Only with the retail editions can they make money. I once read that one of their biggest revenue contributer are the office products.

"Pennies" - a little exaggeration, maybe?

PC makers don't have to disclose what they pay for Windows licenses, but I believe that it's tens of dollars at least. (A semi-attack article at Wikipedia suggests that a 30 euro refund for the "Windows Tax" is low.) There should be nearly zero marginal cost to Microsoft for each copy of Windows installed by a PC maker.

I can't find an online breakout of retail sales of Windows versus PC sales, but I'll stick with my original statement. It'd be nice if Microsoft depended on PC enthusiasts/hobbyists for their profits, but I think that Microsoft's business model is based on the millions of commericial PCs sold each year.

Well, I wish that OEMs were getting Win7 (or other versions) for pennies, but they do not. The cost to OEMs depends on volume but it ranges between $30- $50 per license (for the Home version, the Professional versions are slightly more expensive). Considering the fact that MS is selling about 40 -50 million licenses per quarter (or probably more), this is not small change. Usually, MS gets very little money from upgrades because only a very small number of users upgrade their OS. 95% of users get a new OS with a new computer.

Yes, the MS Office 2010 proved a major seller and, so, of course have been the server products and business services. Microsoft is hardly going out of business by selling Windows. In fact, it has sold something like 450 million licenses of Win7 in two years, far outstripping sales of iOS devices, for example. The problem is that MS sells only the OS, while Apple makes huge profits by selling the hardware. MS only sells limited hardware, mainly the Xbox, keyboards and mice. As things stand, it is still one of the most profitable corporations in the US.

In fact, Microsoft can junk the whole "consumer" series of products and remain greatly profitable. So far, MS has been driven by the enterprise, not by consumers.

Factoid, Windows 7 licenses are at a total of 525 million.

Pretty sure it about $40 , or £40 the oem's pay for home premium.

Originally Posted by whs

Well, sorry guys. By 'Pennies' I meant a low price - very low compared to the retail version.

Originally Posted by Coke Robot

Originally Posted by ADRz

Originally Posted by bobkn

"Pennies" - a little exaggeration, maybe?

PC makers don't have to disclose what they pay for Windows licenses, but I believe that it's tens of dollars at least. (A semi-attack article at Wikipedia suggests that a 30 euro refund for the "Windows Tax" is low.) There should be nearly zero marginal cost to Microsoft for each copy of Windows installed by a PC maker.

I can't find an online breakout of retail sales of Windows versus PC sales, but I'll stick with my original statement. It'd be nice if Microsoft depended on PC enthusiasts/hobbyists for their profits, but I think that Microsoft's business model is based on the millions of commericial PCs sold each year.

Well, I wish that OEMs were getting Win7 (or other versions) for pennies, but they do not. The cost to OEMs depends on volume but it ranges between $30- $50 per license (for the Home version, the Professional versions are slightly more expensive). Considering the fact that MS is selling about 40 -50 million licenses per quarter (or probably more), this is not small change. Usually, MS gets very little money from upgrades because only a very small number of users upgrade their OS. 95% of users get a new OS with a new computer.

Yes, the MS Office 2010 proved a major seller and, so, of course have been the server products and business services. Microsoft is hardly going out of business by selling Windows. In fact, it has sold something like 450 million licenses of Win7 in two years, far outstripping sales of iOS devices, for example. The problem is that MS sells only the OS, while Apple makes huge profits by selling the hardware. MS only sells limited hardware, mainly the Xbox, keyboards and mice. As things stand, it is still one of the most profitable corporations in the US.

In fact, Microsoft can junk the whole "consumer" series of products and remain greatly profitable. So far, MS has been driven by the enterprise, not by consumers.

Factoid, Windows 7 licenses are at a total of 525 million.

Hi there

In your factoid

just a question at W7 licenses at 525 million

What percentage : Full retail x%
: OEM y%
: Corprate z%

I'd love to see the current ration between X:Y:Z


Incidentally MS make a LOT of money insupplying consultancy / other services to outside companies including HUGE one's like SAP and IBM

Cheers
jimbo

jimbo45 said

Incidentally MS make a LOT of money insupplying consultancy / other services to outside companies including HUGE one's like SAP and IBM

NOOOOOOOoooooooooooooooooooooooooooooooo NOT IBM.. They are the creators of O/S2!!!!!! Say it isn't so Jimbo........................................