Microsoft may be losing money on low-cost netbooks with low-cost Windows XP licenses, but some companies are benefiting from the popularity of cheap mini-laptops. Reuters reports that Radio Shack, which has been selling netbooks from Acer and other companies bundled with wireless service plans, reported a quarterly profit that was higher than expected.

The company’s profits aren’t entirely due to increased sales of netbooks, cellphones, and television sets. The company also cut costs in response to economic pressures. The company spent less on advertising and administrative expenses, among other things. But the news does go to show that there are definitely some companies making money off of netbooks, even if the devices have lower profit margins than many other computers.

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2 replies on “Netbooks may be hurting Microsoft profits, but they’re helping Radio Shack’s”

  1. I think Microsoft would make more money if they updated the WinXP just for netbooks and change the name to WinNB. It would give netbook users some thing more than just WinXP and expand Misocrosofts market.

    Personally I think ReactOS – which is still be developed – would make an excellent netbook operating system. It comes at a good price; free. It takes up a fraction of the space of Windows (even XP). I have tried it on my Asus EEE 701a but it has yet to install onto it. It is still in beta; it is up to version 0.3.10. There are those who have installed ROS onto a netbook using vmware. ReactOS is a free open source clone of Windows; which means it can or will run Windows applications (presently or in the future). 🙂

  2. Homer: We’ll search out every place a sick twisted solitary misfit might run to.
    Lisa: I’ll start with Radio Shack.

    You have to hand it to Radio Shack survived a long time on one idea: just sell electronics big and small all the way down to tiny parts. Maybe, they should have shifted focus long ago, but they kept at it. Then again, they could have tripped into the right idea given places like Comp USA or Circuit City are dying or dead. The next death in five to eight years will be EB Games, so maybe even staying out of games and system was smart.

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