Do You Think Windows Costs Too Much?
As this article points out, Microsoft has over $38 billion in the bank, so to speak. They add another billion every month. This money acts as a security blanket for Microsoft's investments, including employee options and loss leading products like the Xbox. As Microsoft does not pay out dividens to share holders, the money just sits there--more or less--earning even more money. During fiscal 2001, they earned 9.42% on their short term investments. These investments are manged with an in-house application called--no kidding--the Catastrophe Hedging Program.
"It's more cash than Ford, ExxonMobil and Wal-Mart have combined, and nearly four times as much as Intel, the tech company with the next largest cash balance. It is enough to buy the entire airline industry -- twice. Or all the gold in Fort Knox, four times over. It is enough to buy 23 space shuttles or every major professional baseball, basketball, football and hockey team in America."
This begs the question, who filled Microsoft's coffers. The answer, of course, is Windows and Office users. So, we ask, does Windows cost too much?