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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Reginald Middleton who wrote (17757)3/4/1998 11:11:00 PM
From: Keith Hankin  Read Replies (1) of 24154
 
By strict definition, no. MSFT cannot unilaterally control pricing and they can not restrict entry to
the market by other competitors (ask NSCP, SUN, IBM, ORCL, BeOS, Apple, etc.)


Yes, MSFT can control pricing. They just raised the price of Win95 $10 to $80. Do you think anyone is going to not buy it because of the cost hike? I believe that this $80 is the OEM price, which is awfully expensive, especially since the cost of production per unit is nearly $0. Also, this price is more than 10 times what OEMs were paying for DOS.

No. They gave it away for the same reason Netscape gave Navigator away for free - to gain
competitive market share quickly.


Come on, Reg. Yes, your statement is correct, but you can't deny that another equally compelling reason that they did so was to "cut off NSCP's air supply"?
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