For the past few months, a lot of different articles have been written about the popularity of Chromebooks in the marketplace, and Microsoft’s position. On Monday though, a report by the NPD Group shows that Microsoft’s concerns about the Chromebook could be for real.
The study by the NPD Group shows that the popularity of the Google Chromebooks in both the educational and business world are gaining. That gaining of percentage points only can point to diminished revenues for Microsoft, as license revenues and Office profits on these units don’t exist.
In the latest NPD Group analyst report that came out on Monday, the growth of Chrome OS and Chromebooks has gained faster than expected. The Chromebooks have a 9.6 percent of the current computer market through the American commercial channel, and that is a figure that Microsoft takes very seriously. The loss of commercial revenue is huge for Microsoft.
This almost 10 percent mark in commercial sales also takes down Microsoft’s commercial space in the world as well. In the NPD Group report, Microsoft’s percentage of the commercial market fell to 63.7 percent from 77.8 percent, which over the billions of dollars spent in the enterprise, equals out to a very large drop in overall income.
Why Is Microsoft Worried?
Many analysts and tech followers wonder why Microsoft would be worried. The biggest reasons to worry include that none of these sub $300 Chromebooks have Windows on them, nor do they have Office in any form. They use the freely available Chrome OS and Google Docs, both available for free, and both which are tailored for Chromebooks users.
The loss of these revenues are aimed at commercial customers who buy these in bulk and give them to their mobile professionals. They need to access email, get on the web, fire out a document or two, and then go offline. More and more of Microsoft’s partners are putting together their own version of the Chromebook, and while they aren’t making huge profits in them, they are gaining revenues overall.
Microsoft needs to worry about the Chromebooks move in the market. Companies who are watching dollars are picking Chromebooks up, and Microsoft only loses here.