Microsoft’s deep-discount strategies for ultra low-cost PCs

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On the heel’s of the recent discussion about the pricing of the Asus EEE PC with Windows, news reaches us today about a leaked document, which details Microsoft’s pricing strategy for ULPC manufacturers. The article is here. Microsoft’s normal license fees are so high that they seriously impact the overall pricing of any such system. Thus, Linux managed to make inroads in that market. Microsoft can’t allow that and so they offer Windows XP at steep discounts to those ULPC manufacturers. Sometimes not more than US$16 per copy.

Link: GeekZone