BGR,
Comparing MSFT and Dell doesn't seem reasonable. We've been discussing the market dynamic, where units are continuing to grow, but ASPs are dropping fast enough so that revenues are flat or declining for the boxes.
MSFT gets a fixed $ amount for the OS, so while units continue to rise, they win, with a marginal cost of $0 for each additional OS shipped, btw. But the box manufacturers lose, in aggregate, when overall revenues flatten or drop.
Now, Dell can grab share, or can hold off the erosion of ASP by migrating its product mix to higher end boxes, but that's another story. MSFT is guaranteed a win in the market scenario as described, plus their upgrade revenues and applications sales [these guys coin money like a central bank] ... Dell has to make its numbers by ripping the food from his neighbors' hands. It can be done, but someone else has to lose for MD to win.
Peter |
