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In the operating system (OS) segment, Microsoft initially brought in an existing product and modified this (MS-DOS) to work with the Intel microprocessor, which were the “brains” of the IBM PC. Microsoft partnered with IBM to provide the operating system for the IBM PC. In addition to developing Windows, Microsoft during this period was working to write applications for the Apple OS.
Microsoft was able in the OS segment to double their revenue per PC when Windows 3.x emerged which still needed MS-DOS to run. Most of the sales Microsoft made were to OEMs who would take the additional step of installing Windows on a computer’s hard drive...
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