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Microsoft’s Earnings Collapse (Down 32%), GNU/Linux a Major Cause

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Posted in Finance, GNU/Linux, Microsoft at 4:32 pm by Roy Schestowitz

Summary: Serious disaster unleashed in Redmond today as net earnings drop by a

AS ALWAYS, Microsoft is using its people in the press to hide the severity of
this, but bloggers are not as stupid and obedient as Microsoft needs them to
be. GNU/Linux has cracked Microsoft's margins and it shows. In the first
quarter, Ars Technica wrote: “Client software felt the slump in PC sales, and
was further harmed by the shift to netbooks; many of these run Linux, which
helps Microsoft not at all.” CRN wrote: “Microsoft, like much of the IT
industry, was caught off-guard by the rapid rise of the netbook category, but
moved quickly to offer a netbook-specific version of XP Home to stem the tide
of Linux on netbooks.”

- From the Microsoft-sympathetic press arrives mostly spin that excuses revenue

With such a sharp dive in profit, Microsoft may find it hard to justify keeping
the current size of its workforce. Rumours of further layoffs [1, 2] which
Microsoft did not deny make more sense now, but the market closed shortly
after these results were published, so it may take a day (or a few) to find
out what Microsoft will do next. █

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