The Business Times

Apple freebies may cost Microsoft dearly

Published Wed, Oct 23, 2013 · 10:00 PM
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[SINGAPORE] Amid the hubbub over the improvements to its tablets unveiled on Tuesday, Apple slipped in an interesting announcement that could be quite a game changer over the medium to long term - one that could hit Microsoft.

This was that its Mac OSX software will be free for download to anyone who has bought an Apple computer since 2007. Its iMovie, Garageband and the productivity suite iWork - a rival to Microsoft's Office - will now be free with a new Apple Mac.

Commenting on this, Jan Dawson, chief telecoms analyst at Ovum, said: "Microsoft generates 96 per cent of its operating margins from its operating system and productivity software licensing. Apple is now teaching people to expect both of those things to be free. While this won't disrupt Microsoft's business overnight, it will create further pressure on Microsoft to bring down prices for its productivity software and especially for Windows."

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