The *REAL* reason Dell insists on Windows on its PCs

Colin McGregor colinmc151-bJEeYj9oJeDQT0dZR+AlfA at public.gmane.org
Sat May 27 16:41:25 UTC 2006


--- Walter Dnes <waltdnes-SLHPyeZ9y/tg9hUCZPvPmw at public.gmane.org> wrote:
> http://www.digitaljournal.com/news/?articleID=4728
> 
> > Dell and Google spokespeople have so far declined
> to comment on
> > details of the agreement, but according to
> Bloomberg.com an unnamed
> > source says Google will pay Dell a fee for every
> PC that is shipped
> > with Googles software.
> 
>   That's right Google will *PAY* Dell to load its
> software.  And so will
> Symantec (90-day free trial anti-virus) as will
> various other outfits.
> In the final analysis, Dell probably makes more from
> promotional loads
> than it pays to Microsoft for OEM Windows.  In the
> consumer market, with
> razor-thin margins, every additional dollar helps.

Yes. Another sort of example, when I worked for
Internet Direct (now part of Look Communications), the
original dial-up modem pool was using US Robotics
desktop modems. The reason being that my boss' best
estimate was those modems were going out the door from
USR at their cost, the profit comming from the AOL,
Compuserve, etc., etc. stuff that was packaged in with
the modem. Even after Internet Direct went to rack
mount hardware you could find drawers full of 1.44 MB
floppy disks and some CDs left over from those
packages.

Neat in a way, one modest size local ISP letting other
monster foreign ISPs lower thier costs :-) .

Colin McGregor
--
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