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Microsoft: Linux may mean price cuts, fewer sales

According to the SEC, Microsoft shows signs of decay as Linux use continues to grow. The report explains that “noncommercial” software is expected to significantly hinder Microsoft’s software earnings in the coming future.

“For fiscal 2005, we believe industrywide factors such as PC unit growth and the success of noncommercial software could significantly affect our results of operations and financial condition. PC unit growth was very strong in fiscal 2004, increasing approximately 13 percent from fiscal 2003. We do not expect similar growth to occur in fiscal 2005,” the filing stated.

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