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To: Doug Fowler who wrote (22478)1/25/1999 4:56:00 PM
From: Charles Hughes  Respond to of 24154
 
Add the price of Office to the price of Windows and the cost of MSFT support, for that '$800 PC' being purchased now for business purposes, and you have a MSFT share of the real cost of that PC of around $1600 bucks of 50%, nearly all of it profit, while the hardware guys and the resellers maybe make a hundred bucks. Just a rough estimate.

Also, by this way of estimating, on a lot of PCs MSFT probably takes 75% of the profits. But lets debate that. I think what is important here is not just share of overall cost, but also share of overall profits, relative to the contributions being made technically and financially. That we debate the cost percentage only, is a sign of their influence on the terms of the debate even now.

Chaz