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Indonesia, India Offers Better Prospects Than China, MICROSOFT Says

Posted in category: Basic Information at: 09/12/2011 by pembodohan89

Microsoft sees better opportunities in Indonesia and India than it does in China due to “very, very low” protection for intellectual property in China, Microsoft’s chief executive said Wednesday.

China is set to surpass the U.S. this year as the largest PC market by units shipped, but Microsoft earns a fraction of the revenue in China that it does elsewhere, said Steve Ballmer, chief executive of Microsoft, who spoke to reporters in Singapore on Wednesday as part of a trip through Southeast Asia.

“Something like 15 to 20 percent of the world’s computers will get bought in China. China will represent for Microsoft probably about 1 percent or something of our revenue,” he said.


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Lack of protections for intellectual property in China is one reason why the U.S. continually runs a trade deficit — US$16.9 billion in March 2010 alone — with China, Ballmer said.

“It’s not surprising that we run trade deficits when the most important industries in the U.S. have a hard time getting paid for their work,” he said, noting that movie studios and pharmaceutical companies are also hurt by low protections for intellectual property.

The low level of protection for intellectual property in China — where software piracy remains rampant despite nearly two decades of lobbying by foreign software companies — means the country is losing some of its attractiveness relative to other markets.

“We see better opportunities oftentimes in countries like India and Indonesia than we do in China, because the intellectual property protection in India and Indonesia is actually quite a bit better than it is in China,” Ballmer said.

That’s not to say that software piracy isn’t an issue in India or Indonesia. According to the Business Software Alliance’s latest study of global piracy, which was released earlier this month, India and Indonesia had estimated piracy rates of 65 percent and 86 percent, respectively, in 2009. China’s 2009 piracy rate was estimated to be 79 percent.

While there’s no sign that intellectual property concerns in China will be resolved soon, Microsoft isn’t giving up on the country.

“It’s a long haul. We’re trying to do our best to collaborate with industry, to collaborate with Chinese companies, collaborate with the government, so that people understand and appreciate the value of proper protection of intellectual property,” he said.


28 Responses to “Indonesia, India Offers Better Prospects Than China, MICROSOFT Says”

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  3. The post is really very informative and it felt good to know that companies like MICROSOFT trust on developing countries like India.

  4. shivshakti says:

    very educative article….looking forward to share this in my own blog.

    thanks

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  6. PhonesExpert says:

    that’s true but there is no innovation in indian guys

  7. Olly says:

    Hi,
    Nice post. I.P. is a reasonably complex issue when you have international markets and online entities.

    Olly.

  8. Sravan says:

    Its good to hear that Microsoft will invest in Indonesia
    :)

  9. hdn952 says:

    I think, Microsoft has provided a very accurate statement. This is because the statement would have on views that have been made ??before. I am very confident that Microsoft will not issue a statement that does not have a strong foundation.

  10. India is the future!:-)

  11. hdn952 says:

    This is my second visit this website. If the Microsoft considers India better than China, it was bound to be based on views that have been made ??before. I suppose I would agree with the opinions of Microsoft.

  12. My friend advised me about your site and how nice it is. She is right, I am really impressed.

  13. laptop hq says:

    Microsoft is expanding around the world helping countries get connected.

  14. Fred Martin says:

    I feeling proud to be an Indian. As we know that Indian economical condition growing day by day rapidly due to just our services and protection we have a one different identity in every filed whether its technology growth or something else. That day is not far when India have all the power.

  15. Thanks for this openion .Itis not surprising that we run trade deficits when the most important industries in the U.S. have a hard time getting paid for their work.thank you very much

  16. I think Microsoft is telling the truth in this one, that India and Indonesia are very good potential customers of US products. But in terms of cheap manufacturing where American products will be produced , there is no beating China. In this scenario it just plainly means that the products will be assembled in China then it will be sold to the India, Indonesia and the whole world

  17. we are proud to be indian technical team.I have also opposite to china . I belive the india got succuss over the china.

  18. Microsoft knows thier craft. They love the world. They are just playing psycholocial warfare here. The truth is Microsoft will use China, India and Indonesia so that the USA will be more richer.

  19. Great post! Microsoft will sure use China, India and Indonesia. Thanks a lor for sharing

  20. Jon G. says:

    “The low level of protection for intellectual property in China — where software piracy remains rampant despite nearly two decades of lobbying by foreign software companies — means the country is losing some of its attractiveness relative to other markets.”

    Perhaps in India offers better prospect but surely not in Indonesia. I just came back recently from Jakarta, Indonesia and software/movies piracy are widely available in the local malls in addition to PC retailers. Yes. from time to time the local police will raid these retailers but a few days later after someone higher up within the police department received bribes, it will be business as usual.

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  23. Fine information, many thanks to the author. It is puzzling to me now, but in general, the usefulness and significance is overwhelming. Very much thanks again and good luck!

  24. I am agree with Indian scientist team.As now a days India is developing good products than china. Also education in India is increasing day by day. ultimately the growth of India is increasing. So I like Indian products than china.

  25. John Ernest says:

    China don’t even allow their people free access to the Internet. India is increasingly growing in the technology market and will soon be on par with other countries. Microsoft should really go for India and Indonesia rather than China.

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