Are Chromebooks Microsoft's Biggest Threat?

By Doug Ehrman – Jul 31, 2013 at 5:30PM

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While they were initially dismissed, Chromebooks have become an increasingly important part of the PC market.

With PC sales continuing to slide, NPD Group is reporting that Google (GOOGL -0.48%) Chromebook sales represented 25% to 30% of PC sales below $300 in the first quarter. Microsoft (MSFT -0.12%), which has clearly felt the pinch of lagging PC sales, has been focused on the tablet market to find a new source of growth. With Chromebooks becoming the fastest-growing segment in the PC space, this is bad news for Microsoft. Google continues to improve on the Chrome OS, making it an ever-imposing contender.

In the following interview with the Fool's Alison Southwick, Fool.com contributor Doug Ehrman discusses the importance of the Chromebook segment and why Microsoft should be worried.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.