Jun 15 2009

Windows 7 May Cost $45-55 For Netbook OEMs

Acer Aspire One Netbook via JackBook

While Microsoft may have acquiesced to drop the three-application limit to Windows 7 Starter Edition, the price is still proving to be an issue. As we reported a few days ago, OEMs aren’t likely to be too enthusiastic about making the transition from Windows XP to Windows 7. Digitimes explains why:

The current price of Windows XP OEM version is only around US$25-30, but the latest quotes from Microsoft for the netbook version of Windows 7 is around US$45-55 and therefore first-tier vendors are unable to transfer the cost to the netbooks’ sales price due to the fierce competition. The first-tier notebook vendors are still negotiating with Microsoft hoping to bring the price down.

For the sake of comparison, Windows XP Starter was reportedly between “$15 to $35 for each copy [in May 2005], and in April 2009… under $15 per copy.”

So what’s that going to mean for OEMs? A $50 increase in netbook price. For a notebook, that may not be too big of a deal, but with netbooks that often cost under $300 it makes complete sense that OEMs would want to negotiate with Microsoft. The fallout from these negotiations has already become apparent, and if things keep going the way they have we may not even see Windows 7 on Atom netbooks.

Official pricing for Windows 7 Starter is as of yet unannounced, but the other editions may get numbers by the end of the month. Let’s hope for some better news by then.

Via ArsTechnica.

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