Microsoft cuts HK prices

Retailers welcome the move but industry players say it will not help the market leader in the long term United States software giant Microsoft has cut the prices of its flagship products in Hong Kong in a bid to boost sales. Analysts and industry players said the move would stimulate short-term sales growth. Microsoft said it would offer a discount of 10 to 20 per cent and a cash rebate from HK$75 to HK$400 to buyers of Windows and Office products from Friday. Under the promotion, the recommended retail price of Windows XP Home edition will be HK$1,395, down from HK$1,550. More expensive editions will carry a larger discount. The marketing campaign was aimed at home users and small and medium-sized enterprises, Microsoft Hong Kong chief marketing director Yolanda Chan said. "It is the first time we have launched such a sizeable and integrated promotion for our desktop products," Ms Chan said. She denied the promotion was aimed at fighting piracy. The company would review in June whether to continue it. Retailers welcomed the move. Rita Ching, a shop manager at Encore Software in Wan Chai Computer Centre, said: "We believe it will boost our sales, as the discount is as high as 20 per cent." Industry players said the promotion would not help Microsoft in the long term. "Companies which use Windows and Office will be happy with the news," said Francis Fong, a council member at the Hong Kong Information Technology Federation. "But [the products] are still very costly. It might reduce the gap between legitimate and pirate usage but it depends on whether users have the intention of going legitimate." Andrew Chew, International Data Corp's software research manager, said the promotion was aimed at encouraging adoption of Windows and Office. "I do not think that it is so much the case of Microsoft fighting against piracy. Can HK$1,395 fight against the unlicensed prices?" he said. Mr Chew said piracy could in fact help Microsoft to a certain extent. "The use of pirated products within an enterprise gives Microsoft a good opportunity to persuade the users at a later stage to switch to licensed copies," he said.Source: South China Morning Post