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Re: [News] Linux Netbooks Eating Microsoft's Lunch

Roy Schestowitz wrote:
Skydweller wrote:
High Plains Thumper wrote:


[quote] Microsoft Missing Netbook Growth as Linux Wins
Sales (Update2)

By Tim Culpan and Dina Bass

Nov. 6 (Bloomberg) -- Small laptops are becoming a big
problem for Microsoft Corp.'s Windows business.

A new breed of lightweight computers called netbooks are
beginning to crack the company's dominance of operating
systems. 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.

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. [/quote]

[quote] Linux, equipped in 30 percent to 40 percent of Eee
PCs sold, will probably sustain a market share of about 30
percent, said Samson Hu, a general manager at Asustek. The
company estimates it will ship at least 5 million Eee PCs
in 2008 after selling about 4 million since the product's

Acer, which is aiming to sell 5 million to 6 million
AspireOne laptops this year, estimates that Linux-equipped
models account for about 20 percent of its shipments,
spokesman Henry Wang said.

Vista's computing needs makes it hard to run on netbooks,
making older versions of Windows more suitable for the
devices, according to Michael Cherry, an analyst at
Kirkland, Washington- based research firm Directions on
Microsoft. [/quote]

[quote] 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.

To cut costs, computer makers such as Acer and Asustek
opted for slower processors and less memory. On these
systems, Linux can boot up twice as fast as XP, according
to Acer's Web Site. [/quote]

I'm not sure if 20-30 % qualifies as "eating Microsoft's
lunch", but it is a significant number, and represents a
heretofore unachieved penetration of the consumer computing
device market by Linux.  The difference in price point (vs
Windows) is less important than the superior performance of
Linux on comparable hardware; superior performance will
spread by word-of-mouth and may have some influence on future sales.

Microsoft gives XP almost for free (maybe for free), so if
Microsoft's lunch is margins, then GNU/Linux eats it well.
Microsoft's Windows revenue has already taken a tumble as a
result of this.


or http://tinyurl.com/4qjctv

For $599 US, Microsoft must be giving their Vista software away for this Intel Pentium Dual Core T2390 (1.86GHz/533Mhz FSB/1MB cache), 8X Slot Load CD / DVD Burner (Dual Layer DVD+/-R Drive), 2GB Shared Dual Channel DDR2, 160GB SATA Hard Drive (5400RPM), 1Yr Ltd Hardware Warranty and Mail In Service.

Which BTW, would make a fantastic Linux machine, being blazingly fast under Linux.

It would be hard to keep the den warm, with Linux making the CPU breathe so freely and running coolly.

BTW, other sources say that GNU/Linux's market share in
sub-notebooks is just over 40%.

That I can believe.

Quando omni flunkus moritati
(If all else fails, play dead)
- "Red" Green

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