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Lenovo pays Microsoft $1.3bn for software

Lenovo will pay up to $1.3bn over the next year to pre-install Microsoft software on its computers. Of course, it is not really doing the paying: it is a Microsoft OEM and so is reselling passing the costs on, along with a little margin for itself, to its customers. So the more it pays Microsoft, the more it is making in PC …

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Eduard Coli

Not so

How can it be $4.3 B in US tech when tech in the "US" is almost non-existent?

If you are talking about hardware why that is primarily and almost exclusively made in China. If you are talking about software or specifically Microsoft software most software is "created" offshore and Microsoft like many "US" software company has more employees outside of the US than inside in India, China, Vietnam etc.

So mostly what the Chinese have committed to is investing $4.3 B in their own industries. No new news here...

Morely Dotes

So Lenova is off the vendors list...

Is there anyone still making PCs who will sell them without an OS pre-installed?

Kwac

$300 desktop

Probably a wise decision not to go into the "sub-$300 desktop" market, as they announced last November.

Don Mitchell

US Software

Mr. Coli is incorrect. Microsoft does have research labs in China and Britain, and it may or may not be outsourcing customer service. However, its software developers and testers are almost 100 percent located in Redmond WA.

A question that nobody has asked is what is the OEM price for Windows? It is far less than the price of a boxed copy of the OS, but you never see anyone quote it.

Steven Hewittt

Vista OEM

Price is around £50-£60 for Vista Home Premium OEM ex VAT.

Chris

OEM price

From a recent e-mail I've seen you can get a refund from Dell for any unwanted Vistas for the grand total of £17 each. Yup, seventeen quid!

I'm not if this is the true cost to Dell for a Vista OEM licence or if it's artifically lowered...

Anonymous Coward
Anonymous Coward

OEM Prices

To Don,

OEM price for Vista Home Premium in the UK approx £70, upgrade is £130, retail is £190.

Obviously the large manufactures do not pay this for OEM, as a guide when Dell did a rebate of Windows license if you could prove that you are not using it (in the US), rebate was approx $50 for XP Pro when at the time you would would be paying £70 for OEM through retail channel.

Anonymous Coward
Anonymous Coward

The £17 Vista link

http://www.bristolwireless.net/news/?p=274

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