chrisv said:
You claim that large PC OEM must offer Windows exclusively, since the
market demands that they offer Windows machines, and supporting both
Windows and Linux would be too expensive.
As neither of us has access to the financial records of large OEM computer
manufacturers this discussion is all conjecture on both of our parts. I have
run several retail stores some of them computer related. I have also been a
Microsoft OEM partner for the last fifteen years. I do know the computer
market from a small OEM's perspective and as a retailer. In the consumer
segment of the market price is the overriding factor. This is why all the
crap from Dell, eMachines, and HP/Compaq dominate this market. The margins
are very slim as I know personally and also from the public records of the
above mentioned companies.
http://www.succeedinginbusiness.com/blog/archives/000093.html
In the above link Dell's profit margins are listed as 6.3% and HP's 4.4%. In
HP's case the computer division actually lost money. This is old data (2004)
but newer data is hard to come by for large companies. I know in my case the
net profit margin for a low end consumer pc is less than 8%. This is if I
charge a premium over the large OEMs. If I try to match prices I lose money.
This is why that end of the market is dominated by the big players. Changing
a production line to double the number of models (i.e. have an option for an
alternate OS on each model) would be expensive but as you rightly say they
could probably afford that expense. After all it is really just the cost of
developing the technology and changing the disk preload image. The really
expensive proposition is supporting two OSs. Add the two expenses together
and whoever did this would have to increase their price. In such a
competitive market no one is willing to try this.
Your claim is utter nonsense. Of course increasing the breadth of
your product line increases costs, but it also increases revenues.
How would this increase revenues? I don't think offering an alternative OS
would increase sales. For the reasons I mention above I don't think they
would be able to increase their prices. Where does the additional revenue
come from?
This is why Toyota sells trucks in addition to cars. This is why
Toyota makes products designed specifically for the American market.
This is why they make 2-seat sporty cars even though only a tiny
percentage of buyers want them. Large companies are MORE able to
support broad product lines than what small companies are able to
support, NOT LESS.
There are many reasons car manufacturers have a broad product line. Their
business model is very different from a computer manufacturer. They sell
enough high profit models to be able to try to increase market share in the
low end by accepting a lower profit margin from that segment. Computer
manufacturers don't have this luxury. IBM tried to work this model and
failed. HP and Compaq also tried to do this and failed. It would be
suprising if after those very public failures someone tried it again.
All of your premises were false, and all of your conclusions were
false.
Thank you for the polite response. We differ on if my premises were false
but at least we are now conversing civilly about why we differ. I personally
would like to see more diversity in the OS marketplace. Everyone would
benefit in the long run. Competition improves a product. In order for anyone
to compete with an existing monopoly they have to create a consumer demand
for an alternative to that monopoly. Just having something that is better
won't do it. In the western world companies operate on the principle of
generating a profit. If there was a demand for an alternative to Windows and
people were willing to pay a premium for it all the major OEMs would be
offering alternatives tomorrow. They key is there has to be a demand and
there has to be a reason (demand) to incur a cost or change the status quo.
Apple is starting to create this demand. Their market share is increasing
even though they charge a premium so it can be done. I don't see anyone
doing it with Linux. The community is too fractured at this point in time.
It would take a large marketing effort (see the mac vs PC ads) and the will
to lose money for a number of years in order to convince Joe Consumer that
they need Linux. It would be nice if it happened but so far it hasn't.