New Prices, Deals Boost Asian Prospects

Moving to improve prospects in Asia, Microsoft reduced prices in Taiwan to settle a government investigation, announced significant investments in China, and signed an agreement with a large Chinese mobile operator. The company has also made the case for Microsoft platforms to the Japanese government, which is considering broad adoption of Linux. The payoff for all of these moves is likely several years away, however, and the price reduction in Taiwan has set a precedent that other national governments are likely to consider in an effort to reduce software prices.

Sales in Asia have been flat over the last few years, but like most other Western corporations, Microsoft wants to ensure that it doesn’t miss a significant ground floor opportunity that could generate major revenue, particularly in China.

Taiwan Deal Sets Precedent

The settlement with the Taiwanese government calls for Microsoft to reduce prices on major products, such as Windows XP and Office XP, by 14% to 54.5% and to make individual applications in Office XP (Word, Excel, PowerPoint, and Access) available as separate products, rather than only as part of a bundle.