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Linux threat to Microsoft   
Thursday, November 06 2008 @ 02:05 PM EST
Contributed by: sde

Small laptops are becoming a big problem for Microsoft's Windows business.

A new breed of lightweight computers called netbooks are beginning to crack the company's dominance of operating systems. Acer and Asustek Computer, which together account for 90% of the netbook market, are using the rival Linux software on about 30% of their low-cost notebooks.

The devices, which usually cost less than $US500, 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.

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