| Monopoly Money | 2002-11-18 17:17 3 comments |
 by Flemming FunchThe Register writes about a recent SEC filing which shows that Microsoft is losing money in every business area except Windows (86% profit) and Office (79% profit). Also see Financial Times. As Slashdot points out: The full version of Windows XP costs about $300.00. Microsoft could sell it for $45 and still make a profit. The difference between the $45 price and the $300 price is what economists call "monopoly rents". So, let me spell it out one more time: Microsoft has a de facto monopoly in two areas, where they harvest huge profits. They use those profits to try to run competitors out of business in many, many other areas, by deliberately selling products at a loss. |