The Sound of Empire Falling

“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.””

The phrase “sales fell short of forecasts” is deadlier than it
sounds.”

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