Despite the popularity of the Microsoft Corporation (NASDAQ:MSFT) Windows operating system and Office suite, few people in emerging markets are willing to pay for legitimate copies according to a lengthy Reuters article. In fact, analysts say even buyers of pirate software prefer older versions of Windows rather than Windows 8; but Ben Thompson, the Taiwan-based author of stratechery.com, a popular technology blog, had this to say:
“The great danger for the company is that what has happened to them in emerging markets – basically no revenue from new PCs because of piracy – is not far off what’s happening everywhere.”
The stakes are high because according to the BSA anti-piracy lobby group that Microsoft co-founded, emerging markets account for 56% of all PCs in use and 73% of software piracy. Moreover and of the $77.8 billion revenue Microsoft generated in its 2013 financial year, China, Brazil and Russia each “exceeded” $1 billion.
Aside from piracy, its worth noting that up to 60% of PCs shipped in the emerging markets of Asia are so-called “naked PCs” with no Windows operating system pre-installed as they usually carry some sort of free and open source operating system like Linux. That compares with about 25% in the region’s developed markets like Japan and Australia.
The operating system is one of the costliest parts of the machine for PC makers working on wafer-thin margins while mom-and-pop shops which form the bulk of retailers emerging markets can’t afford to turn away price-sensitive customers who are comfortable buying pirate software.
To read the whole article, ‘Naked PCs’ lay bare Microsoft’s emerging markets problem, on the website of Reuters.
Similar Posts:
- Microsoft Sees Asian Emerging Markets as a Way to Get Ahead of Rivals (Seattle Times)
- China Internet Update (KraneShares)
- Housebound Consumers Lift Lenovo to Record Revenues & Profits (HKEXnews)
- ABN Amro Likes China, Taiwan and Thailand Equities (Bloomberg)
- Chinese Tech Stocks Down But Not Out As Sentiment Shifts (FA)
- Singapore’s GIC Bets on Emerging Market Technolgy Investments (Reuters)
- Chinese Technology Firms’ Demand for Office, Research Space Surges as Beijing Pushes for Greater Self-Reliance amid US Tensions (SCMP)
- Huawei Says U.S. Ban Hurting More Than Expected, to Wipe $30 Billion Off Revenue (Reuters)
- Will the Russia-China Gas Deal Give Japan Energy Security? (Reuters)
- Sheldon Adelson: Macau VIP Gamers “Below the Radar” Until “Witch-hunt” Levels Off (Macau Daily Times)
- US Citizens at Chinese Chip Firms Caught in the Middle of Tech War After New Export Restrictions (SCMP)
- Factbox-Highlights of the U.S.-China Audit Deal (Reuters)
- Fitch Ratings: More Negative on Macau Casino Gaming Near-to-Medium Term Prospects
- Macau Casino Boom-Bust Cycle in One Chart (Bloomberg)
- Analysis: China Investors Hedge U.S. Delisting Risk With Hong Kong Play (Reuters)
