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

To: Dan3 who wrote (171316)	9/27/2002 4:25:17 PM
From: bacchus_ii	Respond to of 186894

*RE:"If they buy PC's from Dell, HPQ, IBM, etc. they're buying OEM Windows (through the OEM).* "** My friend has order little more than 1000 full desktop computers from Dell this summer for less than $500 a piece. Windows XP included. Dell tried to cancel the deal saying that they made an error in the bid but he refused. Oh, it's in northern peso here ... $CAN ... so it's something like $325 USD. Gottfried

To: Dan3 who wrote (171316)	9/27/2002 4:58:04 PM
From: BelowTheCrowd	Respond to of 186894

Windows? Absolutely correct. You get it with the PC, though in most cases you're going to wipe the drive and install your own corporate disk image, then maintain it through SMS. Of course, any later OS upgrades will be done without the OEM at all, and all those ongoing upgrade and maintenance services are where Microsoft makes a huge chunk of their corporate dollars. We were talking about software in general, including Office, Exchange licenses and other pieces, and I can assure you nobody is paying anywhere close to retail or even OEM prices if you're big enough to get licenses in bulk. Intel will never make as much off the life of a PC because they can sell you a piece of hardware ONCE for each PC. Microsoft is getting a revenue stream for the life of the PC. Even at pretty hefty discounts, that's worth quite a bit. All of which is taking us away from the main point. Intel and Microsoft's cost structures are very different, and their ability to "force" upgrades on corporate customers is also very different. These facts are true regardless of whether or not their is competition out there. If AMD disappeared off the planet tomorrow, I doubt Intel would be able to raise prices significantly for very long. In this market, the low levels of demand have far greater impact on prices than does the competitive nature of the market. mg