Microsoft's Fears Realized: Netbooks are Killing Off Windows Laptops at an Alarming Rate

Paul Lilly

If you're Intel, you have to be ecstatic at the recent trend towards owning a netbook. At a time when many tech companies are posting big losses, the surprising success of netbooks is helping Intel to weather the storm through sales of its Atom processor. But if you're Microsoft, the mood might be decidedly different , even if the company isn't letting on.

On one hand, Microsoft should be thrilled to see more PCs end up in the hands of end users, but that only applies if they come equipped with a Windows-based operating system. And while many netbooks now come configured with Windows XP, Linux is much more prevalent on netbooks than it is on notebooks, which is the result of both underpowered hardware and a desire to keep costs low.

The bad news for Microsoft is that the trend towards netbooks doesn't look to be letting up any time soon. Recent IDC figures show that if you take Atom processor sales out of the equation, total PC shipments are down almost 22 percent. As netbooks continue to sell, that means more users are becoming familiar with Linux, and at a time when Linux is far more user friendly than even one or two years ago.

Are we nearing the year of the penguin?

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