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From CNN:
The Redmond, Wash.-based company said sales fell 6% from a year earlier to $13.7 billion, missing analysts' expectations of $14.1 billion.
Meanwhile, the company's net income fell 32% to $2.98 billion, or 33 cents per share, in its third quarter ended March 31.
And one of the reasons is the shift to netbooks, which often run Linux:
The recession has also prompted many consumers to opt for cheaper, scaled-down "netbooks" that perform only basic tasks such as e-mail and accessing the Internet. They typically run a lower-cost version of Windows or an open-source operating system such as Linux.
Microsoft has recently claimed a high market share on netbooks, but that's most likely overstated. For example, I recently ordered a netbook with XP, but once I get it, the first thing will be to wipe XP off it and install Linux.