Microsoft says OEMs pay about $50 for Windows on a $1,000 PC
By Donald Melanson 
posted Sep 16th 2009 7:07PM
posted Sep 16th 2009 7:07PM
There's been no shortage of rumors and speculation about how much Microsoft charges OEMs for a copy of Windows over the years, but Microsoft itself has stayed fairly mum on the matter -- until this week, that is. Speaking at the Jefferies Annual Technology Conference, Microsoft exec Charles Songhurst revealed for the first time that the company has "always charged about $50" for a copy of Windows on the average $1,000 PC, or about 5% of the total cost. Songhurst also seems to imply that Microsoft is looking to get about 5% across the board for Windows, meaning that it can rake in some impressive profits on high-end PCs while still being able to offer Windows on the cheap for netbooks or $300 desktops. Songhurst even went so far as to say that cheap PCs are a net benefit for Microsoft so long as they are "not cannibalistic to the total PC demand," and he and unsurprisingly further went on to extol the virtues of Windows 7, saying that it is a "compellingly good product," and that "when Windows is executing well, Microsoft is in good shape."
[Thanks, Sammy]
[Thanks, Sammy]
best picture of the day on engadget.
Actually, I thought the photoshop job was kindof lacking!!! Bit rough around the edges Engadget. Nice but not the best!
That's the best Balmer 'shop I've seen in a while.
It looks like Canadian money.
Yea, I went there...
Is this legal tender?
honestly, is there anything one cannot fit Steve Ballmers head onto, he has to have one of the world's most compatible heads.
si, muy bonito.
Loses funniness when they keep shopping the same photo over and over again.
in my opinion, i think we have another Paul A.Chapel ----> i.e. iClap
They really should've done something about "Grant" underneath Balmer though.
Oh. It is Balmer... I didn't notice it till someone mentioned that it's him.
yoda - http://onioning.com/yoda
Actually,
Paul A. Chapel finally slept with his overlord. After a few weeks though, he figured out that he was given a gift, one that he cannot buy with all the money in the world.
And promptly and aptly changed his name :)
UGLIEST TONGUE EVER!!!
Just had to get that out there.
I wonder what Psystar pays for OSx LOL.
Their testicles when apple is done with them.
For that matter, why does Apple even sell OSX to Psystar as an OEM to begin with?
Or do they?
Apple doesn't sell anyone OEM copies of OS X. Psystar was buying retail copies.
they dont sell macs, they sell hackintoshes.
apple has sued them before, but unfortunately its gotten nowhere
apparently the company thought that its the same logic as
"honda telling you which road to drive their cars on"'
i think they were only required to pay about 5000 as of yet though,
but the case is resuming in January?
i say chicken wings to this
i say goat skin to this.
I say dog's tongues, otter's noses, occelot spleens.
they better included Snow Leopard for their PC, its only $29.
cheap ... cheap .. cheap...
So, you're saying that Dell can buy Snow Leopard from Apple for $29 and sell it on new PCs? Because that seems like it'd be pretty big news.
Only if they first pay the $200 for OS X Leopard... I'm pretty sure Snow Leopard is just and upgrade. Then again, I don't use an Apple, so I have no idea, but I highly doubt it's for a full OS.
Of course the $29 is upgrade only.
"Legally" you're only supposed to install it on Macs, which on a baseline already includes a copy of OS X.
That is correct: http://www.apple.com/macosx/
@ Mjayhunt,
Apple still uses the honour system with their OS. You can actually buy the $29 version of Snow Leopard and install it on any Intel Mac you wish, regardless of the OS that is on there. You can even install it on a blank HDD on any Intel Mac and even keep installing it on as many Macs as you wish as the OS doesn’t have a serial key and doesn’t call home to verify that your installation is legitimate. It’s actually quite user friendly in that sense, but despite being a Mac user this is not something that MS could possibly do. These are different business models and making direct comparisons like I’m seeing in these comment are fraught with fallacies.
...but in reality the whole os is right. there.
If we're going to say, "Alright, Apple technically doesn't want you to do it this way, but you totally can", isn't all software free? I mean, the software companies might not WANT you to go about that route...
Way to deface American currency engadget....
Congress has already shown it has no qualms about defacing American currency.
Therefore, I see no problem here.
looks better this way?
5% for windows... thats 7% too much :P
Your math is wrong.
But I still laughed :D
Is this photoshop necessary for this post, I know you don't like MS but still.....
I prefer Windows and I thought the image was funny...
yes but every MS post in this site always has one of this Photoshop, sometime is funny like Donkey Kong one but this not that funny.
You need to loosen up a bit. The article involves OEMs paying $50 for a copy of Windows so Engadget shopped a picture of Microsoft's CEO into a $50 bill. What's so offensive about that?
Yeah, Complex, because we all know that Windows and Photoshopping never brings controversy.
Oh wait...
Is there some estimate somewhere of how many PC's (with Windows) get sold each year? and an average price?
I don't really see 5% bringing in the kind of money it would take to make Microsoft what it is.
Then again I only buy a pc... once every 5 years?
Lots of people buy much more frequently, and Microsoft also sells Office which costs MUCH more--both retail and OEM--than Windows.
That is because the percentage is based on a given value divided by a given cost of a PC. The average cost of a PC is lower than that and basic versions of Windows are cheaper, but may be a higher percentage of the cost of the machine. When you get to a $2000 PC that OEM cost hasn’t moved or barely increased in price which brings the percentage even lower.
Even at $50 a copy that is a huge steal considering this is software and that it runs on the vast majority of PCs. I’d say the actual average is lower than that, especially in countries like China where MS has fought to get their software dominant by selling it for cheap.
Have you looked at what Microsoft makes on their business grade software? SQL server 2008 can cost up to $18,000 for a 5 user license. Office isn't exactly cheap especially when purchased for an office that has over 200 pc's
What are you talking about? I got SQL Server 2005 for free. I doubt it costs over $3,500 for a license of 2008...
Uh you probably got the express version of MSSQL, which is free since a couple version. You can only install it on your own computer and use it for development. For server and production versions, check the price (http://www.microsoft.com/sqlserver/2008/en/us/pricing.aspx). And learn to check the facts before replying like that.
Post something constructive you jacka$$. About 10% of computer users (Apples market share) would care for Snow Leppard and I am sure way less than that even care.
damn comment system. Post missfire!
Comment was meant for snoowleopard
:o|
Puggs, i think you're the one pulling a Kanye. I think Snoowleopard's comment was in jest. Chill.
7% last I heard