[Am-info] Windows overpriced?

[Erick Andrews]

On Fri, 17 May 2002 14:45:33 +0100, John Poltorak wrote:

>
>
>I have often read that Windows is overpriced, but in a monopoly situation 
>there is no market to determine the correct price, so how does one prove 
>that a price is too high?
>
[...]

I don't know how to *prove* that it's overpriced, but I bet you could make
a strong case by doing a spread with few scenarios of fictitious companies 
that produce a similar product.  After you've done the business *pro formas*,
overhead, investment, revenue, etc., see what market share you need to compete
and survive, and how much less you can charge for your OS.  A lot of
variables?  Yes, but I think you could reach some reasonable conclusions.

Alternatively, you might ask how much less MS could charge for Windows
today and still make a profit, a profit that reflects into that business group alone.

-- 
Erick Andrews