miércoles, 10 de noviembre de 2010

Why don't manufactures get together and get Microsoft out of the loop?

Here comes a crazy thought:

Why don't computer manufactures get in cahoots and get Microsoft out of the demi-god loop? I mean, computer manufactures are struggling because their profit out of every sell are very small... in the meantime, Microsoft is laughing its ass off while making millions upon millions over their sells of Windows 7 (or so they say).

If any of the manufacturers dared getting out of the Microsoft way (you know, let's push Linux a bit harder, let's not say we recommend Windows 7, etc, etc), Microsoft would just need to get the price of Windows 7 licenses a little higher to force the manufacturer into red numbers (if it isn't already, of course) and teach the bully a lesson, right? We have all seen the Halloween Documents and know of Microsoft's business practices, so no surprises there. Microsoft would still have all the other manufactures lined up with lower prices to pay for Windows 7, the rebel manufacturer would have to get their prices a little higher because of the increase in the price of Windows 7 it has to pay now making it more difficult for them to compete against the other manufacturers and Microsoft gets to keep the upper hand in the end. Sounds like a subtle kind of trust, doesn't it? By the way, am I the only one who has the phrase "Divide and conquer" pounding in his head?

But what would happen if the biggest manufactures would get together (say, in a secret deal) and fight Microsoft all at the same time? Is that possible? Is that legal? Would that be enough to get Microsoft out of its ways and start really competing instead of been shoved down everybody's throat? If it is legal (I honestly don't know), then why don't they do it and let Microsoft laugh (very loudly, by the way) at them (and the rest of us)?

Now... where did that smart-ass laugh I'm hearing in surround sound come from? Seattle?

8 comentarios:

  1. Until the majority of consumers, and more to the point, businesses, wise-up and finally see Microsoft products for the crap they are, no big manufacturer will take on the risk of being the first to rock the boat.

  2. Yeah, Neil... but then, I'm talking about "in cahoots". Nobody has to know about it. They just make their secret deal and kick Microsoft's ass all at the same time. If it's just a single company, it will be erased from the map as I said in the article.

  3. Is that possible? Is that legal?

    Possible, yes.

    Legal? depends on where. In the US, that would probably fall foul of Sherman Anti-trust Act.

    Besides, do you think Dell or Lenovo would give up their sweetheart MS deals voluntarily? I'm thinking not so much. But I could see them encouraging their competitors do just that, and then let Microsoft chop their figurative heads off.

  4. The problem is that Microsoft kicks back advertising money. You would think these guys would go, "Old way is we pay 200 million for windows and they give us 25 million back for advertising" instead of "New way, we pay 100 million for windows and get to keep the other 100 million."

    In the short term, when the profit on a low end computer is like $5.00. No one can afford to turn down the advertising money AND have the price of windows go up. The first one to make a break for it, will find that once they no longer install windows on every system, the cost of windows goes up by $15 or $20 per copy. That sucks out ALL of the profit. And having to bump the price of their computers by $20 will cause the competition to get all the sales. Unless you can get 3 of the 4 (HP, Dell, Acer, Lenovo) there is not much chance.

    But I believe that day is coming. Some no-name cell phone maker in China will create the ultimate ARM based netbook/tablet thing running Linux. Microsoft will not be able to buy them off, take money from them, sponsor competition, etc. It will legitimize Linux in the eyes of consumers and then the big boys will get with the program.

  5. I am sorry to tell you this but you sound like a naive, dreaming person. This will not happen until hell freezes over. Why?
    Because not the manufacturer gets to decide with wich OS his Laptops are selling. Its all about the pressure from the customer side. And as long as 95% of the people never even seen a linux System they will not buy products without their beloved windows os.
    On the other hand: the manufacturers have build up their relationship with MS and are not willing to give it all up for a Linux OS which future is more than unclear.

    Dont get me wrong. I am a linux user (not geek but user, as in ubuntu) and i love it. But your whole idea seems totally unrealistic to me.

  6. It is very realistic. Somewhere in China there is come company that makes hardware, that has experience with ARM and because of the market segment they are in, there is no overlap with Microsoft products. Microsoft has no sway over them or any competitor in the market they are in.

    At some point they will decide to make a cheap ARM based, flash capable, Linux running PC. It may be a tablet, it may be a netbook, or it may be something else entirely. Why will they make it? Because they will be able to sell a large volume of them in China. More than enough to turn a profit. Enough that due to scale, the prices will drop. They will be able to sell these devices for $100 or less. Windows and Mac OS will not be able to run on these devices.

    Why do I surmise this? Because prices keep dropping in the PC market. There are 2 driving factors, they are WinTel. Windows is becoming a larger part of the price of a PC. When a laptop is selling for $300, the component that costs the most will be Windows. Then there is Intel hardware. It is facing a battle with ARM. An ARM CPU can do 1024x600 full speed video with no noticeable lag and can do it with 10 hour or better battery life at 1/10 the cost of Intel hardware.

    The standard PC can only drop so low in price because both Microsoft and Intel want their piece of the pie. ARM & Linux will allow a company which Microsoft/Intel has no sway over to come in and sweep the sub $200 market. That will almost for certain be a Chinese company not known for making PC's but is involved in the electronics business.

  7. I think the whole idea of selling a PC/Netbook/Notebook preloaded with MS OS is unethical and illegal as this is against the freedom of the Consumer to have his own choice and forcing one to buy Windows against his will. When I go to buy a HP PC or ASUS Netbook, I only want the hardware not the OS. I must be free to buy Windows or download or use a free OS so that I need not pay for an OS I don't need. There must be some legal remedy against Hardware manufacturers forcing people to buy MS OS against their will. It is unreasonable burden over a consumer. Knowledgeable People around the world should fight against these PC/Notebook vendors.