Microsoft to Sell PCs, Starting in India

kripkenstein writes "According to an Ars Technica report Microsoft will begin selling complete PCs, for the first time in the company's history. The program is aimed at customers in India. 'Dubbed the IQ PC, the machines will cost RS21,000 (about $525), are manufactured in partnership with Zenith, and will sport AMD Athlon CPUs. ... In some ways, the move to sell hardware is a natural extension of Microsoft's low-cost Windows initiative ... It may also be a response to projects like Intel's Classmate PC and the OLPC XO.' The Ars Technica summary is careful to state that they seriously doubt this will lead to Microsoft selling PCs in the US, yet the question must be asked: After Microsoft mice and keyboards, then the XBOX and Zune, Microsoft is increasingly becoming a hardware vendor. Is it only a question of time before Microsoft starts to compete directly with the likes of Dell and HP?"

Comments

Good for them...

[chris098]

This really is just an extension of Microsoft's business model. From the article:

Aimed primarily at students...

If they can get students hooked to MS products when they're young, especially in these developing countries where the alternative may be Linux, then it's likely these students will continue using Microsoft later on in life, because they're familiar with it. It's a clever move, and really, I'm surprised it took Microsoft so long to start doing this.

All the more reason for Dell to sell Linux

[slazzy]

Time for hardware vendors to start selling more PCs preloaded with Linux. Why sell Windows when Microsoft is your competition?

Re:All the more reason for Dell to sell Linux

[CastrTroy]

Seriously. It's not a good idea for MS to mess with their distribution channel. With Dell starting to see Ubuntu, it's not a good idea to give the vendors and more reason to push Linux on their customers.

Re:All the more reason for Dell to sell Linux

[jellomizer]

Competition != Mortal Enemies.
Adobe doesn't stop making products for Apple just because Apple has competing software. Same with Adobe not making software for Microsoft because Microsoft sells competing software. Unless Microsoft starts giving their PC some unfare advantage over the other ones. Then HP and Dells will compete with Microsoft on the Hardware end and will be partners on the software side. If microsoft tries to hard to monopolize the PC market that could leave an opening Linux and Apple. (Apple saying well if you go with windows + MS BOX, you are stuck on MS Box and windows) If you are going to be stuck you might as well be stuck with a better system. And the other guys will probably go with Linux if Microsoft starts giving window + MS Box an unfare advantage. This will only happen if Microsoft tries to be Apple

Re:All the more reason for Dell to sell Linux

[morgan_greywolf]

why not just bribe the OEMs who sell there to preinstall Windows?

...like they do here in the U.S., I presume you mean. Because unlike in the U.S., Microsoft can't bribe the politicians as easily in other countries. Why do you think the E.U. is giving Microsoft such a hard time? The U.S. government doesn't give Microsoft such a hard time because Microsoft bought and paid for a whole lot of politicians.

Re:All the more reason for Dell to sell Linux

[bobcat7677]

[Slightly off topic rant from an American...International readers please excuse me.]

Politicians shouldn't be allowed to receive funds, air ads, or otherwise "campaign" for election. We should receive notification of whom has "thrown in their hat", have the opportunity to see them participate in fair debates to base our votes on. Level the playing field so we can elect the best candidate regardless of their social or economic circumstances. Instead of having media blitz races where the candidate with the deepest pockets and more cunning script writers wins.

Wintel?

[Brian Gordon]

What happened to the MS/Intel alliance of old? Microsoft getting annoyed at Intel making chips for Apple?

Microsoft PC EULA

[Anonymous Coward]

I can't wait to see the EULA printed on the PC box, it would contain stuff like.

1. No 'unauthorized' components may be installed.
2. Unable to run 'unauthorized' software , such as Linux
3. Windows 'Hardware' Genuine Advantage

It will probably be full of proprietary hardware, incompatible with 99.9% of the other PC's out there. Special power connectors, special mainboards, 'special' videocards, etc.

The case will probably be welded shut. There is no need to upgrade, just buy a new 'usage license' when you need to, or an 'anytime upgrade'.

Don't expect to find a CD-Burner, or DVD-Writer. There is no need to backup your data, Windows-Live backup will take care of that..for a price.

Re:All directions at once

[jbrannon]

Microsoft is simultaneously going in all directions, which is identical to going nowhere fast. I believe that's called "growing".

Re:Retaliation

[LynnwoodRooster]

If I were Dell, I wouldn't be worried. MSFT won't be any better at selling hardware than they are at anything else.

Meaning they'll just make another billion dollars of net profit each month? Such a failure...

Waste of Time

[jshriverWVU]

The hardware market for low-middle level consumer PC's is dead. No one really makes any money of selling the hardware, it's selling it and making a few pennies on the bundled software and the service agreements.

Guess MS can make at least $100 per machine, because unlike OEM's they have to pay $0 for the Window OS. That's a better margin than the Dells of the world. Plus they can control the numbers (we sold 10k machines all with Vista).

Re:Not Dell and HP...

[Nightlily]

Or they could have "quality" hardware like the XBox 360. Honestly I think the 360 is interesting but I just know too many people who have had to get the damn thing repaired or replaced.

I'm not saying any hardware vendor has a perfect product line.

I will say their mice and keyboards are ok. Though the best Microsoft mouse I ever had I didn't pay for, I won in a MSDN contest.

I think if Microsoft was really confident in these PC's, they would have launched them in the U.S. or Europe. One problem they may have is that the price they set is too high for some users in India (not all - but some). Also if the PC's are huge failure, it will be easier for them to sweep 'em under the rug.

Re:oh but of course

[sconeu]

Since when has the Antitrust settlement stopped MS from doing anything?