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technologyOctober 23, 2002

Open Letter to Steve Ballmer

Steve, last week you did an interview where you talked about Lindows.com and had some strong comments about our $199 computer. I wanted to challenge some of your answers.

You suggested the price difference between a $475 and $500 computer doesn't matter. But the actual numbers show Microsoft software adds over $700 to a complete PC setup — a $1,000+ Microsoft solution vs. less than $500 for LindowsOS. That's 20x the $25 difference you cited.

On why LindowsOS isn't in more retail stores: it's not lack of demand. It's because Microsoft uses MDF (market development funds) to pressure OEMs not to work with competing products. Companies only qualify for pricing rebates if they agree not to carry competitor products. Until you allow them to carry competing products without jeopardizing their pricing terms, it's highly misleading to suggest there's no consumer demand.

Sincerely, Michael Robertson, Lindows.com

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Michael Robertson

Technology entrepreneur with a track record of identifying promising trends in disruptive sectors.

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mr@michaelrobertson.com

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