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Technology Stocks : MSFT (Microsoft) vs. DOJ (Department of Justice)
MSFT 517.81-1.5%Oct 31 9:30 AM EST

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To: Bearded One who wrote (139)1/25/1999 11:43:00 AM
From: odd lot  Read Replies (1) of 185
 
Re: Price of Operating Systems

Those silly consumers. Paying extra for soda due to all the choices. Paying more money for fast food at McDonalds due to the presence of Burger King. Unbelievable.

My comments apply to pc's and os's, not coke and hamburgers. MSFT's strategy is to grow the marketplace by keeping prices "reasonable." They make their insane profits thru huge volume. Do you really think that pc's would be cheaper if Dell et al gave you a choice of os's? Right now, the OEM's pay about $50 per copy of Windows. There's not much room to cut costs through os competitition. If the OEM's had to accomodate other operating systems, do you think a pc would be cheaper? I don't.

Of course, there is the concern that once the market is saturated, MSFT will serve up big price increases. I'm sure they will try, but how much can they raise prices? Wouldn't this attract many competitors?
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