Microsoft (NASDAQ:MSFT), which leads the operating system and office software market, with Windows OS and Office, respectively, has launched a new premium online service called Answer Desk. [1] This is an online support service that helps customers in diagnosing and troubleshooting issues with their Microsoft software. Microsoft competes primarily with Apple‘s (NASDAQ:AAPL) Mac OS X in the desktop operating system market and Google (NASDAQ:GOOG) Docs in the productivity software market.
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Microsoft first launched Answer Desk in its retail stores, trying to emulate the success of the “Genius Bar” in Apple stores. The online Answer Desk is targeted at retail as well as enterprise consumers. It’s relatively expensive though, priced between $49 and $99 per hour for services like personal training and virus removal. Given the massive user base of Windows and Office, if even a small fraction of users decide to use this service, this would mean additional revenues for Microsoft.
Windows accounts for nearly 25% of Microsoft’s Trefis price estimate, while Office accounts for more than 30%. Our $32 Trefis price estimate for Microsoft stands nearly 25% above the current market price.
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