Re:Windows 8 tablet PC makers: We can't compete with the iPa...
by beagle3 on Friday May 18, 2012 @06:00PM
(#3994247)
> Exactly. Microsoft charges a license fee that represents what it thinks is fair value for the work involved in creating an OS.
Microsoft charges a license fee that they believe will maximize their total revenue (units sold multiplied by price). Fair value is only indirectly related, in the sense that a grossly high unfair price would reduce their total revenue.
Apple marks up the price of the iPad over the hardware costs, some of this includes paying for the iOS engineers.
6 of one, half a dozen of the other.
It's just that Apple is more efficient at producing the entire thing than Microsoft+Intel+Samsung are.