Netbooks Take a Bite Out of Windows Profits 221
twitter writes "Analysts at Bloomberg noticed the tumble in Microsoft's traditional software sales last quarter and blamed it on netbooks: '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. When makers of the computers do use Windows, they typically opt for older and cheaper versions of the software. Equipping Linux on a computer costs about $5, compared with $40 to $50 for XP and about $100 for Vista, according to estimates by Jenny Lai, a Taipei-based analyst at CLSA Ltd.' This is why MS declared war on the segment last year and palm top computers in previous years. While they may have successfully tamed the Asus EEE PC, they can't hold back everyone who wants to make a buck on cheap hardware and free software. Analysts have predicted the fall of MS's business model when computers break below $250/unit retail. We are there now, and it has shown in the bottom line."
Re:Correction (Score:5, Funny)
The children are not paid to install the software on the machines.
They are paid to drag the crates of machines up out of the mine.
Re:Yeah, I'm seeing these everywhere (Score:4, Funny)
Thanks for letting us know. Hey everyone, the entire planet is where 93escortwagon is!
I'll tell all the students at the MSU and UofM campuses that they cant use the eee's and aspire one's I see all over the place, because you said so..
Have you proven that the universe revolves around you yet? we are all waiting with baited breath.
Re:Yeah, I'm seeing these everywhere (Score:3, Funny)
I bet you have no windows in the basement?
Re:Why not a MacBook? (Score:3, Funny)
Really? show me where to buy a G4 iBook with 1 gig in it for $350.00 in new shape with a new battery and 160gig hard drive.
Oh and make it very portable and have a very bright screen instead of the very yellowed ones that G4's are known for when they are used.
Also the G3 toilet seats are incredibly slow compared to these netbooks, and again only come with dead batteries and no ram or hard drive space.