October 06, 2004
Free Market Miracle #0008
AT&T is testing Linux software as a replacement for Microsoft's Windows operating system, which runs the 70,000 personal computers used by its employees. [...]
Microsoft, which is growing more slowly than Linux in the market for server computers, is now under pressure in personal computers, where it has a 95 percent market share. [...]
"It translates into pricing pressure" on Microsoft, said Brendan Barnicle, an analyst at Pacific Crest Securities in Portland who owns Microsoft shares and rates them "outperform". Microsoft gets about 80 percent profit on each Windows PC sale. [Emphases added.]
Gee, there's nothing like a 95 percent market share to allow free rein to price your product highly enough to gain 80 percent profit. Meanwhile, Microsoft is leaning on its home state to come through with all manner of Microsoft-friendly (but taxpayer-unfriendly) nuggets.
"If you don't want to create jobs or intellectual property, then there is a tendency to develop open source," sez Chairman Bill. He failed to add that if you want to violate Free Market principles left and right, you tend to develop a state-sponsored monopoly.
Posted by Eddie Tews at October 6, 2004 04:29 PM
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