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Dell triples 'XP tax' on consumer PCs to $150

Dell triples 'XP tax' on consumer PCs to $150

By:  Gregg Keizer  On: 08 Dec 2008 For: Computerworld US(NA) Creator

Computer buyers get soaked once more as Dell levies $150 surcharge for installing the aging Microsoft Windows OS on desktop and laptops

More than five months after it stopped selling its popular Inspiron line of consumer desktop and laptop PCs with Windows XP , Dell Inc. is offering the systems with the aging operating system for a surcharge of US$150 over the newer Windows Vista.

Earlier, Dell appeared as the hero when it offered to sell and support Windows XP to consumers beyond the Microsoft's cut off date for the sale of its outgoing OS.

Dell's Inspiron 1525 notebooks and 530 desktops can be ordered with Windows XP Professional preinstalled for an extra $150, according to the company's Web site.

The fee is three times the maximum amount Dell charged last summer, immediately after Microsoft Corp. pulled XP from retail and barred computer makers from installing the more popular XP Home edition on anything but lightweight, low-priced "netbooks."

Computer manufacturers can install Windows XP Professional on PCs at the factory by taking advantage of the "downgrade" rights built into Vista Business and Vista Ultimate.

Those rights let Dell install Windows XP Professional in lieu of Vista, although the newer operating system is still shipped with the machine so that buyers can, if or when they choose, move from XP to Vista.

Vista Business and Vista Ultimate are the only editions generally available that allow downgrades, and they can be downgraded only to Windows XP Professional. Under Microsoft's licensing terms, the less-expensive XP Home can't be installed as a downgrade.

Dell is selling the Inspiron 1525 notebooks with a Vista Business license. Buyers of the Inspiron 530 and 530s desktops can purchase either a Vista Business license or, for an additional $20, a license for Vista Ultimate.

Last June, as Microsoft's retirement deadline for XP approached, Dell announced it would sell a limited number of consumer PCs with XP preinstalled, none of them from the Insprion family, citing Microsoft rules as the reason. However, Microsoft denied that it restricted XP to certain types of systems.

Then, Dell slapped a surcharge of $20 to $50 for XP on those few consumer PCs and on computers from its the small-business Vostro line. In October, Dell raised the XP "tax" to $99, which is what it currently charges for installing the operating system on Vostro desktops and laptops.


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Gregg Keizer Gregg Keizer is a contributor to the International Data Group (IDG) News Service, which publishes global technology stories from bureaus around the world to more than 300 publications in more than 60 countries.
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