For 25 years, Microsoft held unquestioned dominance in the personal computer business. But last year the maker of the Windows operating system started to look like a weary, vulnerable champ. Fueled by iPhone-mania and the iconic “I’m a Mac” TV ads, Apple was nearing a double-digit share of the PC market. At the same time, a new generation of sub-$500 “netbooks” that ran on the free Linux operating system was taking off.Now, Microsoft has launched a determined counteroffensive. Its uncharacteristically cool TV ads emphasize the affordability of PCs vs. Macs. And it has started offering PC makers a version of Windows, normally around $70, for as little as $15. Mac sales are sliding, and Linux is disappearing from most netbooks. Researcher NPD says 95% of PCs with a small screen and a sub-$500 price tag run Windows today, up from 10% in early 2008. “Microsoft has driven Linux off the lot in netbooks,” says Roger Kay, founder of tech research firm Endpoint Technologies Associates.
http://www.businessweek.com/magazine/content/09_16/b4127063278613.htm
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