Promotions Mark Sales, Marketing Push

A growing number of rebates and discounts for core Microsoft products signals a period of flux for the company’s pricing. The company rarely discounts products such as Windows XP or Office except during transitions to new versions, which makes current discounts exceptional. These and other pricing moves are a response to longer product cycles (in which new product launches that drive upgrades are further apart), greater interest in the price-sensitive small and midmarket business segments, and the need for pricing worldwide to be more sensitive to competition and local economic conditions.

Spring 2004 Promotions

Among the promotions or reductions offered in spring 2004 are the following:

• Rebates up to US$15,000 for U.S. small business customers who purchase upgrades to Windows XP
• Rebates of US$75 on Office Small Business Edition (SBE) 2003, and US$100 on Office Professional, for the purchase of up to five copies
• A price reduction of 80%, from approximately US$499 to approximately US$99,