Will Desktop Linux and OpenOffice remove the Microsoft (MSFT) software tax?
In more price sensitive foreign countries, a computer fully loaded with Microsoft software could be prohibitively expensive. As free open-source alternatives to Microsoft’s products become viable for third world consumers, prices of computers with pre-installed software will drop (Microsoft will likely drop their prices in these countries too). Fortunately for Intel, every computer still needs a processor! Admittedly, many of these processors may be on the low end, but there will be a spectrum of demand. Currency play? Asia’s share of Intel’s sales is now 60% and growing – they are selling to the manufacturers. Given that Asian currencies are expected to strengthen over the next decade as China’s currency policy allows for floating, Intel’s stock could be a very smart bet on strengthening Asian currencies. As Asian currencies strengthen, Intel will get a boost to dollar denominated revenue and profits. Intel does hedge currency fluctuations for 12 months forward, but over the medium to
