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By Michael Kanellos
Posted on ZDNet News: Jul 2, 2004 7:57:00 PM

Although Microsoft has released cut-rate versions of Windows for Malaysia and Thailand, it may not do the same for China, one of the world's largest PC markets.

Speaking to reporters in China, Microsoft Chairman Bill Gates said he doesn't know whether discount versions of the company's software will be needed in that country. He also said that antitrust regulations being passed by the Chinese government will not particularly hurt Microsoft's business.

A number of companies are now trying to tailor their products to better fit the local economies of developing nations. Intel is experimenting, for example, with how to develop a cheap microprocessor for these countries.

Microsoft examines a number of local factors before deciding whether to come out with a discount version of its software for a developing country, including the size of the potential market, the prevalence of piracy and the geographic pervasiveness of the local language.

Thai, for instance, is mostly used in Thailand, a good situation for Microsoft because the company doesn't have to worry about the inexpensive Thai versions of Windows, called Windows XP Starter Edition, flooding the market in Singapore or Indonesia.

A country's willingness to experiment with Linux is also a factor. Thailand had launched a Linux push earlier. Windows XP Starter Edition for Thailand, which also doesn't contain as many features as the regular version, is already available on some PCs, along with a slimmed-down version of Office.

Windows XP Starter Edition will come out as a standalone product as part of a government-sponsored program in September. It will cost $36, far less than regular Windows XP.

China is a rapidly growing market, has a piracy problem and is promoting Linux--all factors that favor the development of a discount version in the local language. And, despite the rapid growth of the PC market there, PCs are mostly being bought by middle- and upper-class families in coastal urban centers like Shanghai and Beijing and not the country's poorer western plains.

On the other hand, there are millions who are fluent in Mandarin spread across the globe.

China isn't the only country with a piracy issue. Around half of the software in Korea is pirated, despite aggressive raids by the police. Although Microsoft has released cut-rate versions of Windows for Malaysia and Thailand, it may not do the same for China, one of the world's largest PC markets.

Speaking to reporters in China, Microsoft Chairman Bill Gates said he doesn't know whether discount versions of the company's software will be needed in that country. He also said that antitrust regulations being passed by the Chinese government will not particularly hurt Microsoft's business.

A number of companies are now trying to tailor their products to better fit the local economies of developing nations. Intel is experimenting, for example, with how to develop a cheap microprocessor for these countries.

Microsoft examines a number of local factors before deciding whether to come out with a discount version of its software for a developing country, including the size of the potential market, the prevalence of piracy and the geographic pervasiveness of the local language.

Thai, for instance, is mostly used in Thailand, a good situation for Microsoft because the company doesn't have to worry about the inexpensive Thai versions of Windows, called Windows XP Starter Edition, flooding the market in Singapore or Indonesia.

A country's willingness to experiment with Linux is also a factor. Thailand had launched a Linux push earlier. Windows XP Starter Edition for Thailand, which also doesn't contain as many features as the regular version, is already available on some PCs, along with a slimmed-down version of Office.

Windows XP Starter Edition will come out as a standalone product as part of a government-sponsored program in September. It will cost $36, far less than regular Windows XP.

China is a rapidly growing market, has a piracy problem and is promoting Linux--all factors that favor the development of a discount version in the local language. And, despite the rapid growth of the PC market there, PCs are mostly being bought by middle- and upper-class families in coastal urban centers like Shanghai and Beijing and not the country's poorer western plains.

On the other hand, there are millions who are fluent in Mandarin spread across the globe.

China isn't the only country with a piracy issue. Around half of the software in Korea is pirated, despite aggressive raids by the police.

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  • Most Recent of 57 Talkback(s)
They need the money for Silkworm missiles
"Defending" yourself from Taiwan is very expensive. Apparently undercutting most of the American manufacturing base isn't bringing in enough yuan to ramp up military spending so that they can continue to intimidate Taiwan and Hong Kong.... (Read the rest)
Posted by: ejhonda Posted on: 07/06/04 You are currently: a Guest | | Terms of Use
China  Enterprise Analyst | 07/02/04
I agree ...  mbraincell@... | 07/02/04
In that case...  AbsolutelyNot | 07/02/04
don't forget stop using computers...  ryusen | 07/02/04
tough luck..  chris_x | 07/02/04
This brings a question to mind...  B.O.F.H. | 07/02/04
9.5  Linux User 147560 | 07/02/04
9.5 is  Enterprise Analyst | 07/03/04
Really?  Linux User 147560 | 07/03/04
Yes, really  Enterprise Analyst | 07/03/04
See once again!  Linux User 147560 | 07/03/04
$36 and MS still makes money  sigmascape | 07/02/04
MS making money  Enterprise Analyst | 07/02/04
What he means  Bill4 | 07/02/04
Solution  Enterprise Analyst | 07/02/04
No one can  in-DUH-vidual | 07/05/04
MS has been found guilty of price fixing in the USA  Jomo_z | 07/05/04
I agree  mbraincell@... | 07/02/04
well sure...  ryusen | 07/02/04
Considering the FACT  Enterprise Analyst | 07/02/04
What is your logical basis for this?  Linux User 147560 | 07/03/04
Logical  Enterprise Analyst | 07/03/04
Let see here  Linux User 147560 | 07/03/04
Reply to your 14 years  Enterprise Analyst | 07/03/04
Man you are really an idiot!  Linux User 147560 | 07/03/04
Actually  Yagotta B. Kidding | 07/02/04
RE: Actually  Enterprise Analyst | 07/02/04
RE: Actually  Enterprise Analyst | 07/02/04
Hey buddy!  Linux User 147560 | 07/02/04
Ok, Witch man  Enterprise Analyst | 07/03/04
Prove I am wrong...  Linux User 147560 | 07/03/04
Don't listen to that nut! He isn't a real Christian!  Linux_Developer | 07/03/04
I dare you  php_developer | 07/02/04
Dare?  Enterprise Analyst | 07/03/04
Poor people don't create companies  Anton Philidor | 07/03/04
Poor people do NOT create jobs  Enterprise Analyst | 07/03/04
re: Poor people don't create companies  Iain_Peters | 07/03/04
Poor people do create jobs for themselves.  Anton Philidor | 07/03/04
Venture capitalism  Anton Philidor | 07/03/04
Stating the obvious contradiction...  theding0 | 07/04/04
If it's good enough for John D. Rockefeller...  Anton Philidor | 07/05/04
Cheap Windows? Heck it's already FREE  Franklin_z | 07/02/04
True, what Gates is saying is he thinks it is best to let them pirate.  DonnieBoy | 07/02/04
Digital drug lord  Still Lynn | 07/02/04
Yes, you hit the nail on the head here. Even $36 is too much for China.  DonnieBoy | 07/03/04
$36 is a month's wages in China  Jomo_z | 07/05/04
conspiracy theory  myndlon@... | 07/02/04
Microsoft will do a special edition of XP when...  Anton Philidor | 07/03/04
eh?  Iain_Peters | 07/03/04
The poor and isolated need computers, too  Anton Philidor | 07/03/04
Poor and Isolated -- Like IBM  Linux_Developer | 07/03/04
... not just ...  Anton Philidor | 07/03/04
Is this what motivates the industry?  IT_User | 07/04/04
Yup.  Anton Philidor | 07/05/04
You just burn em a Linux ISO edition for free  FilledOut | 07/03/04
Will the market bear anything else?  John L. Ries | 07/03/04
They need the money for Silkworm missiles  ejhonda | 07/06/04

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