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Microsoft Boasts 96% Netbook Penetration

An anonymous reader writes "Citing figures from market research firm NPD, Microsoft says Windows' share of the US netbook market has ballooned from less than 10% in the first half of 2008 to 96% as of February. 'The growth of Windows on netbook PCs over the last year has been phenomenal,' wrote Brandon LeBlanc, Microsoft's in-house Windows blogger, in a post Friday. Information Week author Paul McDougall notes Microsoft's 8% decline in Windows sales is due to netbooks sporting Linux. How does Redmond make an 80% gain in netbook market share without the sales numbers reflecting that gain?"

23 of 774 comments (clear)

  1. Honeymoon is over by QuantumG · · Score: 4, Insightful

    For a short while people were willing to forgo Windows for the form factor and price of a netbook. Then Moore's law ticked over and Microsoft was able to enter that market - same price for the machine but with the specs that XP needs. Next iteration they'll be selling units with Vista on them. The only way to keep Microsoft out is to race to the bottom and there's no economic incentive for the hardware manufacturers to do that.

    --
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    1. Re:Honeymoon is over by Anonymous Coward · · Score: 5, Insightful

      one word: ARM

    2. Re:Honeymoon is over by Vectronic · · Score: 4, Insightful

      The only way to keep bloated software out is to race to the bottom, the only way to keep Microsoft out is to provide an alternative that surpasses it in desirability.

      If we all used $100 machines, that were 500mhz, and 10GB's of HD space etc, Microsoft will just create trimmed down versions to run on it, thus not getting rid of Microsoft.

      But if you have something that personal and corporate users prefer over Microsoft's products, then it doesn't matter how low or highly spec'd the machine is, they'll want that software.

    3. Re:Honeymoon is over by jmorris42 · · Score: 5, Insightful

      > The only way to keep Microsoft out is to race to the bottom and there's no economic
      > incentive for the hardware manufacturers to do that.

      There is no incentive for the CURRENT manufacturers to do that. But if you aren't in the laptop/pc business right now there is good reasons to see an opportunity to have the first $150 laptop and sell the ever luvin crap out of them as Xmas impulse items through retail outlets that won't care about cannibalizing their laptop sales because they don''t currently sell computers at all.

      By your logic we would have never seen the $24.99 DVD player because "Who wants to race to the bottom." No, Sony or Phillips didn't do it but no name Chinese outfits did it and make a profit at it. The computer is poised to make that last transition to disposable consumer electronics.

      They won't be trying to kill Microsoft, it will just be that they can't give em enough royalties to matter when selling on consumer electronics margins. So even if Microsoft made em a deal, once the marketplace finishes the move to consumer electronics Microsoft is going to be a shadow of it's former self. And Apple is just as boned.

      --
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    4. Re:Honeymoon is over by digitalunity · · Score: 4, Insightful

      MS has an IA64 release of Windows and it probably costs them a fortune to maintain for little benefit other than to let Intel know they support them, even when they are epic failures. I wouldn't hold my breath for an Windows 7 ARM edition.

      I guess regarding this farfetched 96% statistic... Look who it's coming from. Brought to you by the same market researchers who contended the 13-17 year old music listeners would accept ad-supported music. The 96% figure seems more likely to be a massive error in calculation than anything.

      I've spoken with a few retailers about their Netbook selection and as far as I can tell, Linux dominates based on price. Sure, I don't have hard data to back it up but 96% seems off-the-map implausible.

      http://www.reuters.com/article/pressRelease/idUS137134+31-Mar-2009+BW20090331

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    5. Re:Honeymoon is over by Bruce+Perens · · Score: 5, Insightful

      You're personally willing to make that sort of technological sacrifice just to keep Microsoft out?

      What sacrifice? It's good for customers. It's no sweat for Linux distributions. And hardware manufacturers have shown that they can make sufficient margins to make sub-$300 systems profitable, or they wouldn't be making them at all.

    6. Re:Honeymoon is over by initialE · · Score: 4, Insightful

      It's a phyrric victory. They've sacrificed the perceived cost of Windows by selling it at rock bottom prices. And prolonged the lifespan of XP at the cost of Vista penetration. In mitigation, they impose a bunch of arbitrary restrictions on OEMs for selling XP - http://www.netbooknews.it/en/netbook-xp-ecco-i-vincoli-microsoft/ for details.

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    7. Re:Honeymoon is over by schon · · Score: 5, Insightful

      IIRC Acer's VP said that returns of their Linux netbooks are 30% higher than the Windows versions, however ASUS's CEO says that return rates for EeePcs are the same for Linux models as for Windows

      This probably reflects a difference between Acer and ASUS. Acer netbooks are sold as small notebooks, while the Eee aren't really sold as notebook replacements, but rather as their own, separate type of computer. Basically, people expect the Eee to be different than their Windows notebook or desktop, and so aren't immediately put off by the interface, whereas Acer customers are sold a "tiny laptop computer", buy the Linux version, and get upset when it's not exactly like what they're used to.

    8. Re:Honeymoon is over by Antique+Geekmeister · · Score: 4, Insightful

      Especially the newer LinuxBIOS, which kicks the tar out of that piece of proprietary and undocumented debris that AMI has been foisting on suckers for the past decade or so. Being forced to cooperate with a superior, open source BIOS such as that on the OLPC project. I'm looking forward to massive delight to Microsoft having to hold its news and get comfortable with the superior, much faster booting system to make Microsoft's painfully slow boot processes look bad.

    9. Re:Honeymoon is over by waferhead · · Score: 4, Insightful

      "There are no longer any Linux netbooks for sale at physical retail stores where I live (USA). No, it's not that they're out of stock frequently (as some Windows models are); they are no longer kept in stock.

      Target is the only retailer that even lists Linux models on their website; they used to sell the 7" Eee PC in stores. Now they sell Windows models in-store & advertise them, as do all the other retail stores that sell computers."

      The conspiracy theory loving part of me wonders if that was actually sales driven, or driven on the golf course. :-\

    10. Re:Honeymoon is over by moosesocks · · Score: 4, Insightful

      Can you explain why I, as a consumer, should care about having an open-source BIOS?

      Pragmatic responses only, please. The average consumer doesn't care about open-source ideologies.

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    11. Re:Honeymoon is over by moosesocks · · Score: 4, Insightful

      With new booting software and Linux, your computer will now turn on faster than your cell phone.

      To a full-fledged desktop linux?

      I was under the impression that the true "instant-boot" linuxes were generally tiny distributions that could fit into EPROM (or whatnot).

      I get the fact that it's nice to cut out many of the unnecessary functions performed by legacy BIOS, though that seems like a rather tough sell to consumers, especially given that EFI seems to do much of the same.

      Although I'm sure there's room for speed improvements with BIOSes, booting the operating system still takes at least an order of magnitude more time.*

      *BeOS is one exception to this generalization. Even back in its heyday, it booted up blindingly fast. However, I suppose you could argue about its qualification as a full-fledged OS.

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  2. Simple question, simple answer by jeffmeden · · Score: 4, Insightful

    How does Redmond make an 80% gain in netbook market share without the sales numbers reflecting that gain?

    That's easy, netbooks aren't sold in a comparable quantity, so a staggering increase of 80% reflects a tiny shift in the overall license count. Got any other braindead statistics questions for me?

  3. Lies, Damn Lies, and Statistics by Myopic · · Score: 4, Insightful

    I wonder if they count my shiny new Acer Aspire One? Yeah, it came with XP, and yeah, XP is still on the hard drive, but I installed Linux on the first day, and have spent about 1% of my time in Windows since then. I would call that a Linux computer, but I suppose they call it a Windows computer.

  4. Microsoft is probably telling the truth by ShooterNeo · · Score: 5, Insightful

    This goes against the prevailing wisdom here, but Linux is not necessarily the best OS for netbooks.

    The newest netbooks have about as much CPU power and memory as a notebook computer made 3 years ago. That's enough to run windows XP and older Microsoft applications such as office 2003.

    And, Windows has the overwhelming advantage it always did : it has an enormous existing software library that still dwarfs that of Linux. An operating system is an enormously powerful natural monopoly. It's time to admit that the only way Linux or MacOS could ever pull ahead and have the diversity of software Windows has is if Microsoft royally screws up over a period of years. Windows ME didn't even scratch Microsoft's monopoly, because everyone kept using Win98, and it appears that Vista is the same way.

    Finally, I've heard many complain that the netbook manufacturers don't properly choose a good Linux distro and configure it with all the software a user is likely to ever need. If the manufacturers did that, pre-installing open office and VLC media player and firefox and the rest, and tuned the distro behind the scenes to run blazing fast on a flash disk, then Linux might have stayed a viable option.

    I would assume Microsoft has also adapated to this market : they must be offering a substantial discount on the software license for a netbook. Wouldn't surprise me if they were selling "XP for netbook use" for $20 a license. It could very well be that it is cheaper to pay Microsoft than it is to pay the technical support costs for Linux.

  5. Let's not forget... by Shadow7789 · · Score: 5, Insightful

    Let's not forget that Microsoft had to be dragged kicking and screaming into this market.

  6. Re:Because they are NOT NETBOOKS by Anonymous Coward · · Score: 4, Insightful

    You're doing the same thing by making up your own definition which excludes XP.

    The fact that once XP is included in the definition the number of netbooks with XP on them vs Linux on them kind of implies that XP has some bearing on what people want on their netbooks.

  7. Re:WinCE vs Linux? by jmorris42 · · Score: 5, Insightful

    > If you can do that with WinCE as well as Linux, then what difference does it make?

    First off, Linux has a full software stack. A real working Firefox with most of the expected plugins, OO.o, etc. WinCE has what exactly? To date it, and the apps written for it, have mostly been geared around PDAs and smart phones, usually with a touch screen.

    WinCE isn't Windows. The main advantage Windows has for the average customer is the known quantity. It's Windows, just like on the other machines they interact with at home, school, work, friends, etc. The same programs run, etc. WinCE has none of those advantages, in fact the association with Windows will only confuse as it will lead the clueless to think it IS Windows and then be disillusioned when it is discovered to be something completely different.

    WinCE will raise the per unit cost of the machine though, and if it isn't to cut too deeply into Microsoft's profits it is going to have to cost a lot to keep the monopoly rents flowing in. Meanwhile the pengin is still Free except for the ARM port of the Flash plugin.

    --
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  8. Where can I buy a Linux netbook? by ladislavb · · Score: 5, Insightful

    Last week I walked into no fewer than 20 different computer stores here in Taiwan (the home of ASUS, Acer, MSI, etc), big and small, in order to buy a Linux netbook. But despite the fact that some of them displayed as many as 20 different brands and models, I found exactly 0 (zero!) netbooks shipping with Linux. Zero, nada, nothing! It just doesn't exist any more.

    So yes, I believe Microsoft and its 96% figure. While people had choice between Linux and Windows, the figure was very different, but since the consumers are no longer offered a Linux option, even 96% seems low. The situation with netbooks is now exactly the same as with laptops - it's 2009 and it's still impossible to buy one without Windows pre-installed!

    I always have to laugh when I read news about EU suing Microsoft for bundling a browser or a media player with Windows, but fails to see the real issue - Microsoft's complete stronghold over hardware manufacturers. ASUS, Acer, MSI, Dell, HP - they all "recommend Windows for everyday computing" on their web sites. Out of their free will, no doubt...

  9. Re: epic failures by Clay+Pigeon+-TPF-VS- · · Score: 4, Insightful

    That made me sad. Alphas were good chips.

    --
    Viral software licensing is not freedom, it is in fact GNU/Socialism.
  10. Windows == not a netbook by IGnatius+T+Foobar · · Score: 4, Insightful

    I maintain that a netbook running Windows, or even a standard Linux build, isn't really a netbook. It's really just a small, underpowered laptop.

    The whole point of netbooks was supposed to be that they *weren't* PC's, they were consumer electronics devices. Quickie access to the Internet, a little photo sharing and music playing ... all of the things that you didn't really want to drag out a PC to do, but didn't really want to cram onto a phone either ... and with a snappy operating system that boots up quickly and gets the job done without calling attention to itself. If you have to run Windows Update on your netbook to protect it from the worm-of-the-week ... you've totally missed the point.

    I'm more interested in the next generation of netbooks -- the ones that will cost $150-200 and run for eight or nine hours on one battery charge -- running low-power ARM and a designed for small form factor OS like Android. That generation of hardware will prove that a netbook isn't supposed to act like a PC. (And even if Microsoft weasels its way into that market by building Windows for ARM, they'll still find themselves at a disadvantage because x86 Windows software won't run on it. In fact, they'll even be faced with an unprecedented rate of customers returning them for just that reason.)

    Let PC's be PC's and let netbooks be netbooks. They're not the same thing.

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  11. Yeah, but here's the thing... by Gordo_1 · · Score: 4, Insightful

    I got one of them fancy Samsung NC10 netbooks (Atom 1.6GHz, gig RAM, XP pre-installed).

    My OS of choice?

    Mozilla Firefox.

    At least that's where I spend 99% of my time on it.

    Aside from the fact that MS probably counts shipped units to come up with its "96%" claim, does it really matter whether Linux geeks or Microsoft (or both) claim me as a user? The underlying OS identity is about as relevant to me as the manufacturer of the 2.5" hard drive the unit comes with. I stuck with XP since it was the path of least resistance.

    Discuss...

  12. Re:Steve Ballmer Says by gnick · · Score: 4, Insightful

    I went off-track too, but a little differently.

    The first thing I thought was "In related news, Malware Writers Boast 96% Netbook Penetration".

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