A few months ago Microsoft blamed the growth of low cost netbooks for its revenue decline, and the company announced it would lay off 5,000 workers. Now Microsoft has announced its revenue was down for the second quarter in a row. And executives are still blaming netbooks.
In order to stay competitive in the netbook space, Microsoft has been offering Windows at deep, deep discounts for low cost mini-laptops. While the company usually gets $50 to $60 for every computer sold with Windows installed, Microsoft may be making as little as $15 for each Windows XP powered netbook that’s sold.
Microsoft says 10% of all PC shipments during the first quarter of 2009 were netbooks, which helped contribute to a 16% decline in revenue for the company.