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Microsoft makes less than $15 for each netbook Windows XP Home copy

by Tarinder Sandhu on 20 April 2009, 10:50

Tags: XP Home, Microsoft (NASDAQ:MSFT)

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The current operating-system choices for folk looking to buy a cheap-and-cheerful netbook generally lie with either a Linux implementation or Microsoft Windows XP Home.

Looking around online etailers, it's often difficult to make an informed guess on the additional cost of having XP, because the specification for non-Windows netbooks is often different.

However, the overall price of a budget netbook - at around £200 - is such that Microsoft isn't making a whole heap of cash from bundling in XP.

A report in the Wall Street Journal indicates that Microsoft's play at gaining the majority share in the ever-increasing netbook market has come at the cost of vastly reduced XP Home license fees, citing an income of less than $15 once rebates have been factored in. Compare this with the $50-$60 for bundling in Vista for regular desktops and laptops. Yes, the Redmond outfit has already paid for XP a long time ago, but it's practically having to give it away now.

Microsoft's aim, of course, is to cement its position in the netbook market by taking a hit now but then cashing in with Windows 7 Starter Edition. The very cost of netbooks - or, more precisely, a lack of - has forced the software giant's hand, so it can only be a good thing for the consumer.

Have you bought a netbook recently? If configured with an operating system, did you go for a Linux variant or XP? Are XP-equipped netbooks good enough for the job? We'd love to hear your thoughts.


HEXUS Forums :: 5 Comments

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They're prob. happy to get that, if Linux had taken off on netbooks (like it should have), they wouldn't have been pleased
I wonder how the cripplingly low app limit will play with consumers
I'm used to running so many things at once (part lazyness, part necessity) that the small screens and low performance of a netbook aren't of that much use to me. I'll stick with larger laptops and my desktop for now I think, so honestly the netbook market is of little interest.


However, I am interested in how Microsoft plays the Windows 7 card. If netbooks get more powerful and Microsoft get the versions of Windows 7 right, then they could be of interest in the future.
directhex
I wonder how the cripplingly low app limit will play with consumers

In XP? Ah. 7 then?

7 Basic is for emerging markets, are you assuming that netbooks will get this version? Rumours are of a notebook ‘mix’ version but no SKU or specs have been annouced have they?
the netbook version of windows 7 wont have the 3 program limit.

Windows 7 Starter (netbook version)
Market: Worldwide availability this time but with new PCs only

dont confuse it with windows 7 Home Basic edition. home basic is the 3 app limit version of windows 7 and only sold in third world countries.

found out this from winsupersite.