Microsoft: Linux may mean price cuts, fewer sales

C|Net | at | by Mike

Microsoft has filed a report with the U.S. Securities and Exchange Commission warning that 2005 could be challenging, as Linux continues to steal business and PC sales remain sluggish.

"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.