Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (91850)	11/7/1999 5:00:00 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

Dan, <OS and mass distribution application costs have stayed absurdly high compared to the drop in hardware costs> I'm sure even you would think that requiring Microsoft to charge no more than the cost of materials and shipping is going a little too far. This is a complicated issue, no doubt. How much should a software company charge for its products? Why do some applications like office suites cost hundreds of dollars, when there is free software like StarOffice out there? Why should MS get away with charging $80 for a Windows upgrade (and $200 for a full version), when Linux is being given away for free? And in a somewhat related note, why should recording companies charge $12 to $19 per CD, when people can download music off the Internet for much less? I think the comparison between the diving prices of hardware and the steady prices of software is kind of invalid. Tenchusatsu

To: Dan3 who wrote (91850)	11/7/1999 7:46:00 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Dan, "OS and mass distribution application costs have stayed absurdly high compared to the drop in hardware costs - and they should have dropped more, not less, due to the relative economies of scale (marginal cost of each additional unit "produced" is near zero)." One, you are neglecting cost of R&D. Two, are you prepared to dictate gross margin, or have the government dictate gross margin? It sound like that is what you are saying when you say prices "should" have dropped. Price is determined by what a willing buyer and a willing seller..., there is no "should" involved. Thats the way capitalism works. "It's like needing to bribe someone to get a business permit - and not being permitted to compete if you might put pressure on the sloppy operation run by some official's brother-in-law." This analogy makes no sense at all. John