Windows Piracy – China and India at 80% and 60%? Holy Cow

Nearly 8 out of every $10 spent on operating systems goes to Microsoft” by Joe Wilcox and it goes on about how well Microsoft and Apple are doing and how successful MSFT has done in the Client and server space. Here is the kicker.

I also asked about how piracy affects Windows OS revenue. Seems to me that given high piracy rates, particularly in Asia, Windows OS revenues could be much higher and its market share considerably larger. “Piracy impacted Windows revenue, particularly in emerging markets such as China and India,” Cheung responds. “We believe China and India have piracy rates at 80 percent and 60 percent, respectively. Eighty percent of Microsoft Client business comes from PC OEMs — and the rest, 20 percent retail business, is more piracy-vulnerable…We believe Microsoft can earn 20 percent to 25 percent more if there is only ‘systematic piracy’ in the world.” That doesn’t mean no piracy but low piracy — around the 20 percent here in the United States.
Holy camoly! 80% is a really high number… What do you guys think?]]>

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