LENOVO Group Ltd has signed an agreement with Microsoft Corp to pay US$1.2 billion for Windows software this year to comply with China’s efforts to curb piracy, the country’s No. 1 personal computer maker said yesterday.

The purchase follows a March mandate by the Chinese government that computer makers install licensed operating systems on their products prior to sale. Other Chinese PC vendors including Founder, Tongfang and TCL Computer have signed contracts totaling US$430 million with Microsoft since last month.

About 70 percent of Lenovo’s customers are now choosing to install Windows.

I thought this was the interesting bit:

Despite the Windows purchases, Lenovo said it won’t dramatically increase computer prices. Its volume purchasing will help cut software costs, the company said. Each Windows copy costs the manufacturers about 300 yuan, one-fifth of Windows’ retail price, industry insiders said.

That’s just over $37. How does that compare with prices MSoft charges folks like, say, HP?

Oh yeah, I thought it pretty funny that Hu Jintao — arriving for a state visit to the US, this week — will have dinner with Bill Gates, first, before he gets round to visiting the White House.



  1. Donald says:

    The reason is geeks are the true rulers of the earth. Bill can simply pull the plug on windows and the whole world will go to hell.

  2. gquaglia says:

    #1 so your saying Gates is like Master Blaster from Barter Town (Beyond Thunder Dome for those none movie geeks) who if you piss off, calls for an embargo and shuts off all the heat and power…

  3. R says:

    Bush vs Gates

    “Two men enter, one man leaves!”

  4. rus62 says:

    C’mon Eideard, what do you think Jintao would want to do after meeting our President? Go home. So he stops by Bill’s house and gets some inside info on what it is like to go up against the US gov’t.

  5. joshua says:

    I just saw a pic of them toasting eachother in Gate’s dining room…..looked like the Great Hall in China.

    I guess internet access and imprisiong dissendents take a back seat to 2 billion in sales.

  6. axe says:

    Remember, who will still have power after 2008?

  7. Juergen says:

    The big guys pay between $40-$50 depending on volume shipped. Independent system builder are lucky to get XP Home for $80-$90. The consumer can buy it at Sams or COSTCO for less than $90.


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