MSFT Internet Explorer vs. NSCP Navigator Message Board

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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: damniseedemons who wrote (22378)	1/11/1999 4:36:00 PM
From: Keith Hankin	Read Replies (2) of 24154

The reason that Microsoft is so profitable is that they're blessed by operating in a highly profitable and scaleable industry. Software has high fixed-costs (R&D), after which the variable costs are minimal. The more they sell, the more profitable they become (as that fixed cost is spread upon more software units). Having the OS monopoly is one of the main reasons why MSFT is so hugely profitable. If there was a competing OS with 35% marketshare, with MSFT having 55% marketshare, MSFT would have to reduce their prices.

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