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Why doesnt Microsoft make their own computers?

KrillBee

Golden Member
I thought about this the other day.

Microsoft makes mice, keyboard, computer software, and video gaming systems,

but why dont they make their own line of computer systems?


They could probably get great deals on parts, and they could put their own operating system on there (which would help cut costs. An option that non Microsoft manufactured computers wouldnt have since they have to buy the OS from Microsoft)

It seems like too logical a move to have not occurred yet. Is it because of legal issues and it would be seen as creating a monopoly?

Or do you think its because the company just thinks its wiser not to build their own computers?
 
I've thought that for years, but I doubt that will help them convince the government that they're not a monopoly.
 
Originally posted by: KrillBee
I thought about this the other day.

Microsoft makes mice, keyboard, computer software, and video gaming systems,

but why dont they make their own line of computer systems?


They could probably get great deals on parts, and they could put their own operating system on there (which would help cut costs. An option that non Microsoft manufactured computers wouldnt have since they have to buy the OS from Microsoft)

It seems like too logical a move to have not occurred yet. Is it because of legal issues and it would be seen as creating a monopoly?

Or do you think its because the company just thinks its wiser not to build their own computers?

They would slowly become like Apple then.
 
Because dell is their best customer.

And theyd be in competetion with the rest.

Rule #1 of selling a component: Don't compete with your customers. 3dfx forgot that, look at them now...
 
Because Pcs are all about low margins. Microsoft already makes billions on the software. Why waste time investing in the infastructure just to get into a low profit industry?
 
Originally posted by: So
Because dell is their best customer.

And theyd be in competetion with the rest.

Rule #1 of selling a component: Don't compete with your customers. 3dfx forgot that, look at them now...

ATI is just doin fine.
 
Too much competition in the pc market probably. With consoles its only 2: Sony, Nintendo. With OS there isn't that much. With mice and keyboards, Logitech.
 
even dell doesn't make their own computers. they will need to buy cpu, video card, mobo, ram, etc. from other companies that make them.
 
The margins are better in software, at least when you look at MS software and x86 hardware. Also, it probably wouldn't do to upset the big OEMs that are responsible for most Windows installs these days. If MS tried to make Dell, HP, Emachines, etc. irrelevant, they might try to return the favour. A paltry few percent profit on some cheap beige boxes would be cold comfort indeed if, for example, Dell got upset and actually gave selling systems with non MS OSs a proper try.

Right now, the relationship between MS and their big buyers isn't exactly always warm and fuzzy, after all, margins are tight so there is a certain amount of squabbling over who will get what; but the relationship is basically beneficial enough for both sides that it would hurt more to leave than to stay. If it looked as though MS were threatening the existence of the hardware companies too much, they might well respond by deploying other OSs(read Linux) particularly on their lower end machines, just in order to preserve their position. Worst case scenario, not too likely; but not implausible, would see the hardware companies actually investing some of their softare licencing money in improving the other OSs.
 
Originally posted by: DaWhim
even dell doesn't make their own computers. they will need to buy cpu, video card, mobo, ram, etc. from other companies that make them.

I don't think that's what the OP meant 😉 - by that logic, Intel and AMD don't make their own CPUs because they purchase the wafers from other companies 🙂
 
Originally posted by: ramuman
Originally posted by: DaWhim
even dell doesn't make their own computers. they will need to buy cpu, video card, mobo, ram, etc. from other companies that make them.

I don't think that's what the OP meant 😉 - by that logic, Intel and AMD don't make their own CPUs because they purchase the wafers from other companies 🙂

Not really. If you buy a Dell lappy, for example it has often been entirely made by Asus or any of up to three suppliers.
 
Originally posted by: Imdmn04
Originally posted by: So
Because dell is their best customer.

And theyd be in competetion with the rest.

Rule #1 of selling a component: Don't compete with your customers. 3dfx forgot that, look at them now...

ATI is just doin fine.

ATI produces their own video cards as well as supplying GPUs to other manufacturers such as Sapphire.

3dfx instead cut off GPU supply to their manufacturers when Voodoo3 came out, and produced the card themselves. So the manufacturers said "screw 3dfx" and went to Nvidia.
 
Okay, I guess those are all good reasons, and thinking about why they arent doing it makes a lot more sense now.

I was just impressed with the Xbox360, and realized that it was like a computer, which made me wonder why Microsoft hadnt bothered building a computer yet, if they are capable of making a gaming system which is like a computer.

But anyways, I guess it makes sense why they havent made computers yet.
Quite honestly I'm amazed at the success in some of the other markets they've taken part in though, particularly keyboards and mice (if it a system i care about, I always buy a microsoft mouse these days)
 
Originally posted by: KrillBee
I thought about this the other day.

Microsoft makes mice, keyboard, computer software, and video gaming systems,

but why dont they make their own line of computer systems?


They could probably get great deals on parts, and they could put their own operating system on there (which would help cut costs. An option that non Microsoft manufactured computers wouldnt have since they have to buy the OS from Microsoft)

It seems like too logical a move to have not occurred yet. Is it because of legal issues and it would be seen as creating a monopoly?

Or do you think its because the company just thinks its wiser not to build their own computers?
Besides Software MS outsources all the work on their products and just slaps their name on them when they go out to market.
 
Originally posted by: So
Because dell is their best customer.

And theyd be in competetion with the rest.

Rule #1 of selling a component: Don't compete with your customers. 3dfx forgot that, look at them now...

Exactly.

Ideally, Apple is Microsoft's biggest competitor, too.

If they entered the computer market, Dell would instantly be their biggest competitor and Apple would sit back and enjoy taking a larger market share and both Dell and Microsoft F' themselves by not using each other's products to boost their sales.
 
Because we would not want to wake up to this.

There's (Microsoft) printed on enough already!

<- Not a MS hater at all.

🙂
 
There is enough faulty hardware in the world, we dont need MS making problems any worse. They cant even get the Xbox360 to work right, i certainly wouldnt trust them with my computer hardware.
 
Originally posted by: Hacp
Because Pcs are all about low margins. Microsoft already makes billions on the software. Why waste time investing in the infastructure just to get into a low profit industry?

:thumbsup:

you can't make real money selling computers, so why would they bother?
 
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