The sound of empire falling
I predicted years ago that what would eventually do Microsoft in was white-box PC makers defecting because they needed to claw back profit margin as the Windows license became the largest single item in their bills of material.
And here’s the confirmation I’ve been awaiting: Microsoft Missing Netbook Growth as Linux Wins Sales. The boring biz-journalism headline is guarding some startling facts.
Nov. 6 (Bloomberg) — Small laptops are becoming a big problem for Microsoft Corp.’s Windows business. [...] Acer Inc. and Asustek Computer Inc., which together account for 90 percent of the netbook market, are using the rival Linux software on about 30 percent of their low-cost notebooks.
30% is significant share, well above the single-digit range that desktop Linux has been stuck in for the last decade and larger than ISVs can afford to ignore. And it’s hitting Microsoft’s bottom line:
The devices, which usually cost less than $500, are the
fastest-growing segment of the personal-computer industry — a trend
that’s eating into Microsoft’s revenue. Windows sales fell short of
forecasts last quarter and the company cut growth projections for the
year, citing the lower revenue it gets from netbooks.
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