Profit off the agenda in Microsoft® Windows® 7
Microsoft plans to deliver much with its new OS Windows 7 with little profit margins for hardware manufacturers.
In what could be a move that could drive profit margins to new bottoms for hardware manufacturers, Microsoft's new operating system, Windows 7, with its smaller footprint and also with its ability to be more adept at memory handling could be targeted at the new netbook market.
Prices of portable computers are at an all-time low and the entry of netbooks, which come small and light with low-cost prices, is not something new anymore now. And Windows 7, which comes in innovating types of Linux-based portables, could make a deeper dent into the hardware manufacturers market.
It surely looks bleak for the hardware manufacturers market with increasing pressure to sell products over $800 as becoming more tougher. There is a wide margin in the price of a notebook and a netbook. And, by market trends, it looks like the latter dominates over the former. In addition, the new netbooks, along with its cheap price, come loaded with Windows 7. This surely entails a steep decline in the revenue of OEMs and with upto an 11% decrease, which has been an outcome of the growth propensity of licenses which have been an offshoot of high Netbook PC sales, there will surely be a lot of thinking and mustering up to do for the hardware manufacturers.
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