Why Microsoft (And Even Apple) Are Threatened By Google Chromebooks' Popularity

Motek Moyen profile picture
Motek Moyen


  • Chromebooks easily surpassed Windows and Mac OS computers in the U.S. K-12 education market.
  • Alphabet’s cakewalk victory in the education market forced Microsoft to invent the walled-garden Windows 10 S. Apple now offers discounts to make its iPad more attractive to K-12 education customers.
  • Microsoft and Apple know that letting Google dominate the K-12 education is dangerous. The kids of today are tomorrow’s corporate workers and movers.
  • Instead of kids getting trained on Windows and Microsoft Office, a larger part of the U.S. K-12 education system is now being indoctrinated with Chrome OS, Android Apps, and Google Docs.
  • The Windows 10 S initiative is Microsoft trying to insure that its operating system and productivity software are not rendered irrelevant in the future.

Microsoft’s (NASDAQ:MSFT) decision to do a walled-garden approach for Windows 10 S computers can be easily explained. It is a big part of Microsoft’s strategy on how it could slow down the quick rise of Alphabet’s (GOOG) (GOOGL) ChromeBook. While Apple (AAPL) is only discounting its new iPad for its education system customers, Microsoft is more aggressive with its Windows 10 S campaign. Windows 10 S only allows installation of UWP-compliant software.

The Windows 10 S is Microsoft’s carefully thought-out love letter to the K-12 education market. The chart from Future Source Consulting clearly illustrates just how easy it was for Alphabet’s ChromeBook’s to displace Windows and Mac OS/iOS devices in the U.S. K-12 education market.

(Source: Future Source Consulting)

It took just three years for ChromeBooks to capture 58% share of the K-12 computing market. This cakewalk victory by Alphabet is why Microsoft came up with its Windows 10 S strategy. Nadella thinks low-cost Windows 10 S computers can beat low-cost Chromebooks.

A Windows machine that won’t run legacy custom or commercial Win32 apps like Photoshop, QuickBooks, and AutoCAD is not going to succeed in the corporate world. On the other hand, the K-12 education market will not mind buying a cheap Windows 10 S computer that only allows installation of UWP (Universal Windows Platform) programs.

(Source: Microsoft)

Why Microsoft Has To Defend Its Presence In The Education System

The long-term consequences of letting Alphabet Chromebooks rule the education system could lead to disastrous results for Microsoft and Apple. The K-12 students of today are going to be the future employees and corporate movers. The clear and present danger to Microsoft and Apple now is that 58% of the U.S. K-12 students are being converted to Alphabet’s software ecosystem.

I admire the brilliant Google employees who concocted the education-focused

This article was written by

Motek Moyen profile picture
Motek Moyen is a financial analyst, technician, and Adobe multimedia content creator. He studied Mathematics, Commercial Advertising, and Computer Science in the 1990s. He does not trade stocks.

Disclosure: I am/we are long MSFT, AAPL, GOOG, GOOG, AMZN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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