But I imagine Microsoft makes most of the money selling preinstalled versions of Windows that come with new computers, instead of direct sale to users. So I suppose Microsoft does in fact make quite a bit of money from Windows in China.
Ironically, Microsoft benefits in another way, which is that the pirate software prevents anybody else from developing a viable commercial alternative. This reminds me of a story. In the mid 90s, a friend of mine was shopping for a computer. Being an Apple fanboy at the time, I recommended a Mac.
He said: "Mac won't run AutoCad."
I said: "You can't afford AutoCad."
He just laughed. Pirate software drove his choice of platform.
> 2007: Jeff Raikes, head of the company's (Microsoft) business group, said at a recent investor conference that while the company is against piracy, if you are going to pirate software, it hopes you pirate Microsoft software.
Buying from well-known OEMs is rare in China. Many laptops, desktops and tablets are domestically made, even OEMs in China preload computers with pirated Windows.
If it was from a well-known OEM, it would be the Linux/freeDOS version, and the retail store would help install a pirated copy of Windows for you.