Microsoft's Future

This is something that I predicted would happen:

The company's Windows client business grew by half its anticipated target - two percent instead of four compared to last year. Microsoft said fewer traditional PCs and more netbooks had shipped than expected. Also, revenue from OEMs was down as they shifted to sell cheaper netbooks.

Netbooks running Windows mean growth but relatively low income as they do not run money spinning versions of Windows, like Windows Vista Premium Edition. Microsoft said it was too early to say how much netbooks are cannibalizing traditional sales.

It will be interesting to see how steep the dive is.