Re: [NTLK] [OT] Concerning Apple's Switch to Intel Chips...

From: Michael J. Hu▀mann (
Date: Tue Jun 14 2005 - 11:11:42 PDT

Martin Joseph ( wrote:

> True, but the profit margin on software is SO much higher then on
> hardware.

The profit margin isn't fixed; it depends on the number of copies sold.
Given the number of copies they can expect to sell, Apple would need to
ask for a much higher price for Mac OS X to arrive at the same profit
margin as Microsoft. The Windows business model works well for
Microsoft, but there's no place for a smaller vendor co-existing with
them (remember Digital Research?). Either Apple wipes out Microsoft from
the face of the earth to become the new Microsoft, or they lose. Or they
stick to their existing business model and stay a hardware company,
selling expensive computers and cheap operating systems.

- Michael

Michael J. Hussmann

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