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Exchange Rates Spell High Prices for Windows 7 In the EU
CWmike writes "European customers will pay up to twice as much for Windows 7 compared with US users, even though the new operating system will ship without a browser in Europe. Some of the money Microsoft stands to make on the European editions of Windows 7 comes from the weak dollar. Last week, for instance, the dollar fell against the euro the most in a month, hitting $1.41 per euro. For example, Windows 7 Professional, the key retail edition for businesses, will sport a price tag of 285 euros, or $400.60, and £189.99, or $313.84, at Saturday's exchange rate. In other words, EU customers will pay twice the $199.99 U.S. price; U.K. buyers will pay 57% more. And depending on your view on bundling IE, Europe's customers will be paying more for less, with Microsoft's decision to yank IE8 from Windows 7 in an effort to head off EU antitrust regulators, who may still force the company to take more drastic measures."
pissing off a big corporation.. Europe, get ready to pay back the massive fines microsoft was forced to pay by European legislators. Bend over and take it.
If I earn $2000 in the US, or 2000 in Europe
In a month? I'd be delighted to get a job here in Spain which paid 2000 euros per month, and that's with a degree from a prestigious university and over 5 years' experience. In the US I would probably be earning about $4000 per month.
How about "I want to connect to the Internet". Seriously, you must be so owned right now.
How we know is more important than what we know.
A modest proposal: they should just further ramp up their EU prices (say, to 1.000.000 EUR per copy of Win7) and lower their US prices (say, to 1 $). They should do likewise for *all* US products. This approach would (1) fairly reflect the true value of US products and (2) be as effective as boycotting them, *without being rude*.
Intellectual Property: an immaterial non-entity, most fiercely contended by those with no proper intellect to speak of.
No, the 2 year warranty is only a general example and is only valid for physical goods (although the European Commission is presently trying to extend it to software as well, http://news.cnet.com/8301-1001_3-10237212-92.html).
There are however plenty of other hidden costs associated with doing business in EU.
Wow. We need to get this big news out on the street!
Variable exchange rates means winners and losers!! Who knew?
Weak currency means imports cost less, but exports cost more!! Has someone informed the president? This could change national economic policy beyond recognition!
Biggest shock of all; this even applies to Microsoft and software industry!! And I thought software companies lived on an internet virtual never-land beyond the reach of economic realities.
Hey look - it's another selfish and delusional Linux user!
Sigh. Do you run a web browser? Does it display images?
How we know is more important than what we know.
Nah, I'll leave that as an exercise for the reader.
How we know is more important than what we know.
No, that's not the way it works with the market.
If US companies enter the European market, they either use the 1US$=1EUR scheme if the EUR is higher, otherwise the price will of course be adjusted. Remember the 1980s when the US$ was skyrocketing to nearly EUR1,80? Even entry-level US electronics like the Commodore C64, Ensoniq synthesizers were priced insanely high.
The other way round, however, European companies like to match US$ prices, even if that means selling at a loss. Have a look what Volkswagen, Mercedes, BMW, or Porsche cost in the US compared to their EU prices... But also other pricing is weird: in 2003, I bought a Canon S45. Street price in the US: US$330. Street price in Germany: EUR550. Back then the exchange rate US$:EUR was about 1.20:1.
Clearly, the Europeans are doing something very wrong, and this is not only overtaxation...
As a canadian I must unfortunately correct you in that Quebec is part of Canada not the US.
As a European, and thus being possessed of geography skills above that of the average North American, I can ensure you that Canada, Quebec, and the US are all very much part of the continent of America (overseas areas notwithstanding).