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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator -- Ignore unavailable to you. Want to Upgrade?

To: XiaoYao who wrote (21386)	11/11/1998 4:58:00 PM
From: Daniel Schuh	Read Replies (1) \| Respond to of 24154

Benefits? Xiao Yao, once again, Microsoft's production costs are essentially nil, and production capacity is approximately infinite. Everybody has development costs, do you think a state-of-the-art microprocessor gets laid out for free? Then you got to build one of those $2billion fab lines to produce the thing. And that fab line has a maximum rate of production, too. Yet somehow microprocessors have gotten cheaper as well as more powerful in the last 2 years, along with most of the rest of the components I follow. This isn't exactly graduate level economics, more like high school level. Support costs are something else, but Microsoft support is something else too. Cheers, Dan.

To: XiaoYao who wrote (21386)	11/11/1998 6:12:00 PM
From: Keith Hankin	Read Replies (1) \| Respond to of 24154

How about benefits, new offices, new equipment, new support people, etc. Not including new products with new marketing, new support for developers. It is not that simple. First of all, $100K per person is very generous. Notice I mentioned "people", which included support personnel. When all is said and done, they are making huge profits - unprecedented for any company in the entire US economy. If there was any ability for competition, given the huge market, you can be sure there would be competitors, and MSFT's profit margins would not be so high.