How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 475.51

+0.7%

1:24 PM EST

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To: Larry Sullivan who wrote (10975)	9/24/1998 11:04:00 AM
From: Daniel Schuh	Read Replies (2) of 74651

Larry, you're right about the retail price versus the OEM price, of course. On the other hand, the proportion of the cost has risen a lot. Ballmer's line was that the business model was 2% of the cost, which was about right for $2000 PC's and $40 OEM Windows (approximate, not precise figures of course) I guess the business model calls for a higher rate at the $500-600 price point. Cost of everything else has plummeted. Something to do with competition? Nah. Cheers, Dan.

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