News
PC margins to get even smaller?
Andrew Wooden Aug 28 2008, 12:22pm
Comments (3)
HP looks to scrap pre-installed software, which retailers are charging for removing
The world’s largest global PC vendor HP is looking to abandon pre-loading software on its computers, a business model that props up the low margin on computers through huge payments from software companies.
According The New York Times, there is growing consumer frustration with this ‘bloatware’ – various photo editing, utility software and anti-virus tools which is usually on trial or linked to a paid service, and can slow a system down.
Retail giant Best Buy claims more and more people are asking for the software to be removed immediately upon purchase of laptops and desktops, and that such a service is “going to increase in popularity.”
To combat this, HP is reportedly to introduce a new system into its PCs next year, which would instead point users to a web page where they can download similar types of software.
Dell added: “This is an evolving story and Dell is evaluating how it can best deliver software to its customers.”
Many analysts believe that any such new web based system would reduce the amount of control vendors have, since users could easily go elsewhere for downloadable software, which in turn could damage the revenue they get from such deals and reduce margins.
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Comments
“Makes sense”
Posted by: Phil - Aug 28, 2:47pm
Makes sense, but I hope it means retailers won't end up picking up the cost and having their tight margins made even smaller. The multiples would be ok, but it would kill many independents.
“Thank Goodness”
Posted by: Darren - Aug 28, 8:20pm
Thank goodness, we remove all this bloatware before we sell our laptops to customers so that they get a computer that is as fast as possible and they choose what they want on it rather than having it forced upon them. We put around an hours prep time in to our sales and have to soak up the cost of removing this.
“Re: Thank Goodness”
Posted by: Garry - Aug 29, 11:42pm
You can expect these "cleaner" machines to come with a higher price tag, since the manufacturer will no longer be getting a revenue from the software companies.