Vista: Too Pricey for Emerging Asia?

Microsoft's latest improvements add costs that may be prohibitive for users in critical economies and send them to rivals or pirated copies

Microsoft has to do more if it wants to boost Windows Vista sales in Asia's emerging markets as affordability is still an issue, an analyst says.

According to a statement Thursday on Microsoft's first-quarter earnings for fiscal 2007, Allan Krans, an analyst at research house Technology Business Research (TBR), noted that while enhancements included in Vista offer security and functionality improvements, the operating system also requires a heavier hardware configuration compared with Windows XP.

Although the costs of a dual-core processor, added memory, and graphics processors may not be prohibitive for users in the Americas or Europe, any additional cost on a PC can have a substantial impact in emerging geographies like China, Krans said.

View: Business Week

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19 Comments

OK their operating systems are too expensive for everyone not just asia. only businesses can really afford to upgrade all their machines to vista, i have 5 computers running XP in my house which would cost well over a grand to update. MS needs to realise poeple will pay for stuff if it is reasonably priced. i woudl buy windows if it was only $100 but of course if i want vista ultimate which is some ridiculous price

Croquant said,
which is why so many turn to software piracy: That's the only viable option many people have left.

Thats like saying when people cant afford a big screen tv, they turn to robbery: thats the only option they have left.

What you are saying is quite ridiculous. There are many other options besides piracy, such as using a cheaper/free OS or sticking with their old ones, or not using a computer.

In china, the price of Vista Ultimate is 3,600 RMB, but the average of monthy income is only 1,000 RMB in Shanghai (the most developed city in china) :suspicious:

The best way for MS to reduce piracy is to reduce it's price. Of course, that would effect the shareholders, which won't happen. It's MS's business what price it wants, but, if they want "the whole pie" they should consider reducing the price and selling more, for less initial profit, but in the long run it would seem they would make more money, and have better
saturation of the market with LEGIT versions.

Hello,

Am from Karachi, Pakistan.... I contacted 'Aroma Soft' MS distributor here in Pak they say the price of WIN VISTA ULTIMATE is RS 12,000 that is almost USD 196 and VISTA BASIC RS 5,500 that is almost USD 90, I dont think it is such a bad price here in PAK an average second hand computer costs around USD 150, and most of the software I have seen people here us is IE, WMP, WINAMP, OFFICE, etc so if take down or add office to windows it will be way easier to get rid of piracy... I have legit win vista basic but never will buy office its costs is very inflated.... USD 250

Im not from asia... but I can't afford it either as Im a student - what do i do? I simply do not update until I get a new PC, I do not go out and Pirate it...

"OMG I can't afford to buy a Bently... wait I'll just go steal it then".. yeh right thats how the world works? What really happens - I simply dont buy a Bently.

plastikaa said,
Im not from asia... but I can't afford it either as Im a student - what do i do? I simply do not update until I get a new PC, I do not go out and Pirate it...

"OMG I can't afford to buy a Bently... wait I'll just go steal it then".. yeh right thats how the world works? What really happens - I simply dont buy a Bently.


If Bently's could be posted and hosted on the internet, you bet your bottom dollar they'd be stolen...

ir0nw0lf said,
If Bently's could be posted and hosted on the internet, you bet your bottom dollar they'd be stolen...

The are many obvious differences between intellectual property and physical property. That is why the laws are so different. If you steal a Bentley, you have caused direct and measurable harm to the property owner. In most cases, the violation of copyright holder's rights isn't direct or measurable. That's why in most countries violations are usually handled as civil cases rather than criminal.

Very true, some people suggest just reducing the price for things like Vista, but the problem is far more complex than pricing issues to be perfectly honest.

Speaking with Adobe, they were surprised to know that "ordinary people" wanted things like photoshop too. But if they aim at the whole market they need a price thats probably 1/10th of the price what it is now... that means they would have to sell more than 10 times as many just to get the same profit (slightly more that 10 times due to things like overcosts of producing more). Then on top of that they would have many more support problems with novice users (as Im presuming most photoshop users are professionals that run into relatively few problems.)

When you start looking at it, for adobe to try and make a product like photoshop accessible to everyone it just makes more work for them with possibly negative profit.

Similar is true with Microsoft possibly, apart from they have a broader market.

EDIT:

even at $10 for Vista, loads of people in Asia would still pirate it for $1, just not quite so many.

plastikaa said,
Very true, some people suggest just reducing the price for things like Vista, but the problem is far more complex than pricing issues to be perfectly honest.

Speaking with Adobe, they were surprised to know that "ordinary people" wanted things like photoshop too. But if they aim at the whole market they need a price thats probably 1/10th of the price what it is now... that means they would have to sell more than 10 times as many just to get the same profit (slightly more that 10 times due to things like overcosts of producing more). Then on top of that they would have many more support problems with novice users (as Im presuming most photoshop users are professionals that run into relatively few problems.)

When you start looking at it, for adobe to try and make a product like photoshop accessible to everyone it just makes more work for them with possibly negative profit.

Similar is true with Microsoft possibly, apart from they have a broader market.

EDIT:

even at $10 for Vista, loads of people in Asia would still pirate it for $1, just not quite so many.

This is crap, it is like comparing fords and feraris, photoshop is designed for a certain market whcih is not the end consumer, it is the high end graphic designer, so the price is fine, MS is aiming their OS at the end home user so the price has to be adeqquate for that user to be able to afford it, it is a lot easier for a company to justify the $3000 price for photoshop than it is for an end user to justify the cost of windows.

it's like saying ferrair should lowr their prices so that all the ford drivers can have one. coomparing MS and adobe is just a stupid thing to do

They (Asia) should just stick with Windows XP then, Windows Vista is not much different from Windows XP. Windows XP doesn't require top hardware either.

Isn't there a bargain basement- cost version of Vista for the Asian (emerging, I think they call it) markets? And it's still too expensive?

What about free OSes like Ubuntu, etc? How are they doing in the Asian markets?

everyone seems to think it is soo easy to just switch to a differnet OS, in reality all you get doing this is a whole bunch of nightmares as, all current software you own doesn't work and you have to go buy new versions. you also have a whle bunchoff issues with document formats and the likes. not to mention the average joe woudl have no idea how to use linux, and well MAC OS is more expenisve as you have to buy the whole mac to go with it.

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