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Many people view Chromebook as a threat to Microsoft. For example, Julie Bort of Business Insider wrote "LOOK OUT MICROSOFT: Google And Intel Will Make A Big Chromebook Announcement On Tuesday" in her article: http://finance.yahoo.com/news/look-microsoft-google-intel-big-194439911.html?bcmt=comments-postbox

This perception is wrong. Chromebook will not kill Microsoft. In fact, even if all PC manufacturers today stop making Windows PCs and laptops, Microsoft can do so themselves. It will make Microsoft bigger than Apple!

Chromebook may well kill Intel and OEMs like HP. Why? Because Intel's strength is to make fast processors. However, Chromebook does not require fast CPUs, it is so cheap that there will be little (or negative) profit margin. The worst part for Intel and HP is that users do not need to upgrade a Chromebook as frequently as a PC. If Chromebook takes off, Intel and HP's revenue will drop by at least 60% within a few years!

5/7/2014 12:28:12 AM

There's a fool at Motley Fool that keeps posting articles about how Google, HP and Intel are bringing down Microsoft / Windows:

This is absurd. In reality, not only Google's Android and Chromebook are hurting Intel and HP, but also they are hurting Google itself.

First of all, Microsoft is actually stronger than Intel and Google. Intel is of course weaker than Microsoft. If Microsoft acquires AMD, Intel will be dead; but Microsoft does not need to do so.

With smartphone and tablet sales growth quickly slows down, Google will also face huge problems: its revenue and profit growth has missed estimates in the past few quarters, and the future is bleak: the iPad sales has dropped. Ironically, most of Google's mobile revenue comes from iOS, not from Android. The CPC is dropping quickly as more people search from mobile devices, but advertisers clearly don't want to pay for such clicks. In fact, if PCs disappear today, Google will suffer as hard as Microsoft since  over 70% of Google's revenue is from Windows PC. In the meantime, Microsoft can collect billions of $$ from Android licenses whereas Google receives nothing - even worse, companies like Amazon and many Chinese OEMs have completely removed Google's cloud services from their devices.


The views and opinions expressed in this post are those of the authors and do not necessarily reflect the position of DriveHQ (even if it is posted by DriveHQ employees), its subsidiaries, or the management team. Any users and DriveHQ employees are welcome to post their comments.

5/12/2014 11:45:27 PM

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