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Microsoft Sees Threat From Android Notebooks

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With the grim economic climate weighing on all sectors of its business, Microsoft reiterated warnings about slowing revenues and profits for the second half of the year, but vowed prudent spending as the company looks ahead to new fronts in its war with Google.

But sparring with its archrival in areas like wireless -- where Google (NASDAQ: GOOG) recently staked a claim with the launch of its Android mobile operating system -- won't be an easy matter, given the gloomy prognosis for Microsoft's (NASDAQ: MSFT) other key areas of focus.

As a result, Microsoft CEO Steve Ballmer said in a presentation to analysts Tuesday morning that the company's financial team has taken to the history books, studying comparable crises of the past and trying to extract lessons to apply in the current downturn.

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