"The cheap path
As Caitlyn Martin pointed out recently, the price of entry level
Linux netbooks is dropping to incredible lows! You can now get a
basic Linux netbook for less than $200. The original Sylvania GNET
is now selling for around $179 on Amazon. Last week I pointed you
to other excellent deals on Linux netbooks. As these little
machines become more and more commoditized the prices will have to
drop, and the price of the Windows license will be harder and
harder to justify. This will be especially true for subsidized
netbooks, as the network operators will want the cheapest option
possible and may not see much added value in Windows.
"Microsoft has no intention of lowering it's prices, in fact
most rumors suggest that Windows 7 starter will cost twice as much
as Windows XP to OEMs. This means that the netbook manufacturers
will be forcer to increase the price of their Windows based
products. This will widen the price gap between Linux and Windows
based netbooks even more. If you add the fact that Linux netbooks
require less resources than their Windows counterparts to deliver a
smooth user experience you have a situation were Linux based
netbooks will be ideally placed to sell as cheap companion
machines. Windows netbooks on the other hand will look more and
more like expensive and underpowered mini laptops. Cheap subsidized
netbooks have another advantage: since the 3G network operators
have their own "Brick and Mortar" shops this will create an extra
outlet for Linux netbooks on which Microsoft has little
control."
