The netbook represents a serious threat to Microsoft’s core OS business.
For years, I’ve believed Microsoft was in a precarious position in the market because the cost of software
had become a larger precentage of the cost of a new PC.
In 2004 I said:
When PCs cost $3000+, DOS and Windows ran about $100 for OEMs. That amounts to about 3% of the retail cost. Fast forward 10 years. A PC can be had for less than $500. If Windows cost even $50 (which is low), that is 10% of the…
