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Old 04-25-2009, 01:30 PM   #1
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LXer: Microsoft earnings drop as netbooks take chunk of PC sales

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As the last round of quarterly reports rolled in, Apple's didn't look so hot—until they were followed by mediocre results from Microsoft and an absolute disaster for Sony. This time around, with everyone's expectations lowered by months of economic turmoil, Apple's results looked pretty good, but Microsoft put a quick stop to any speculation that the good news for Cupertino was a general sign. The economy hit Microsoft hard, knocking profits down by nearly a third from where they were a year ago, with nearly every division of the company seeing a drop in revenue. After these results, I fear for Sony.

Old 04-25-2009, 04:32 PM   #2
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You know, netbooks could get really difficult for Windows 7. I suspect that the low price point is the reason they are such big sellers, and Windows 7 isn't going to change that. If Microsoft prices Windows 7 to high, it kills netbook sales. If it offers a low-cost crippled version (like the rumored one that will only run 3 applications) it may piss off customers. If they try either of these approaches, Linux will eat their lunch, and probably force them into offering a low-cost fully functional Windows 7 and thereby cannibalize their profits across the board.

Netbooks may end up being as big a problem for Microsoft as they have been for Linux.


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