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Microsoft $3 loss-leader

p2pnet.net news:- Bill and the Boyz are going for a loss-leader approach with a $3 software package aimed at the “underserved,” a euphemism for people who aren’t already Microsoft punters.

The bundles, slated to start shipping in the second half of this year, includes Windows XP Starter Edition, Office Home and Student 2007, Windows Live Mail Desktop and several educational applications.

The ‘deal’ also allows Microsoft to penetrate users’ homes.

” The software maker said it will sell a Student Innovation Suite, which includes Windows XP Starter Edition and Microsoft Office Home and Student 2007, for $3 to governments that subsidize a certain percentage of the cost of PCs for primary and secondary students for use at home and at school,” says Associated Press, going on:

“Orlando Ayala, a senior vice president for Microsoft’s emerging segments market development group, said it took 35 years for the company’s software to reach a billion people; reaching the next billion isn’t just a side philanthropic project for Microsoft. ‘Many of these people we think are going to be consumers down the road,’ Ayala said in an interview.”

Bill Gates made the announcement in Beijing, says AP.

Coincidentally, talking to students at the University of Washington’s business school students in 1998, “Although about three million computers get sold every year in China, people don’t pay for the software,” said gates, adding:

“Someday they will, though. And as long as they’re going to steal it, we want them to steal ours. They’ll get sort of addicted, and then we’ll somehow figure out how to collect sometime in the next decade.”

The next decade has arrived.

Slashdot Slashdot it!

Also See:
Associated PressMicrosoft increases software, education for underserved billions, April 19, 2007
sort of addictedBill Gates’ China sales trip, July 3, 2004

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2 Responses to “Microsoft $3 loss-leader”

  1. Reader's Write Says:

    “They’ll get sort of addicted, and then we’ll somehow figure out how to collect sometime in the next decade.”

    Is it just me, or does this sound like the kind of stratagem a drug pusher would use?

  2. Reader's Write Says:

    … and consider the taxes too. Can be a great deal after all

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