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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?


To: Proud_Infidel who wrote (2696)8/28/2002 9:31:46 PM
From: Proud_Infidel  Respond to of 25522
 
Microsoft's Newest Challenger: Moore's Law
Entire PCs can now be bought for less than the cost of one copy of Microsoft Office software -- and an interesting new market is born.

But as prices continue to drop and demand for cheapies grows, one company is finding itself priced out of the party: Microsoft (MSFT). That's because its standard word processing, planning and spreadsheet software package, Microsoft Office, costs north of $450 --almost as much or sometimes more than the entire cost of a PC itself. With broad licensing deals, the cost for PC manufacturers is likely lower than the $450 retail price, but even so, the software represents an enormous percentage of total costs for the computer maker. As such, Microsoft is finding itself at odds with Moore's Law. Prices for technology have dropped, but office software has risen.


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