Does Microsoft Need China?

The tech giant is on the rebound, but its future may lie in how it decides to adapt its pricing model to the developing world.

The Price in Asia

The chart below shows license fees relative to GDP/capita for a basic toolset of Windows and Office XP*, and the effective US$ equivalent for the toolset across Asia, expressed via purchasing power parity rather than market exchange rates. The sources used are the World Bank World Development Indicators Database, 2001. Piracy data from the Business Software Alliance, a trade group, is shown to demonstrate the co-relation between piracy and higher real-costs for the software.

Country Annual GDP
Per Capita
Number of
PC’s (000)
Piracy of Microsoft Windows Cost for basic Windows toolset Cost GDP per capita months
United States US $35277 178326 25% US $560 0.19
Asia
Bangladesh 350 254 N/A 56401 19.19
Bhutan 644 5 N/A 30668 10.43
Cambodia 278 18 N/A 71184 24.21
China 911 24222 92 21678 7.37
Hong Kong 24074 2600 53 821 0.28
India 462 6031 70 42725 14.53
Indonesia 695 2298 88 28412 9.66
Japan 32601 44311 37 606 0.21
Korea 8917 12142 48 2215 0.75
Lao PDR 326 16 N/A 60525 20.62
Macao 14089 79 N/A 1402 0.48
Malaysia 3699 3000 70 5341 1.82
Mongolia 433 35 N/A 45598 15.51
Nepal 236 83 N/A 83770 28.50
Pakistan 415 585 83 47630 16.20
Papua N.G. 563 298 N/A 35071 11.93
Philippines 912 1702 63 21658 7.37
Singapore 20733 2100 51 953 0.32
Sri Lanka 849 175 N/A 23257 7.91
Thailand 1874 1698 77 10540 3.59
Vietnam 411 933 94 48011 16.33
Regional Aggregates:
Asia 2128 102229 N/A 9282 3.16
European Union 20863 116997 N/A 947 0.32
Latin America 4335 18703 N/A 4577 1.55
Africa 652 7636 N/A 30297 10.31
Middle East 2679 9708 N/A 7375 2.51

Discuss

Your email address will not be published. Required fields are marked *