Linux is about to take over the low end of PCs?

While I’d like to believe SJN here (been a Linux user for a while now…) I’m a bit skeptical when considering the logic and assumptions behind SJN’s claims:
As his claims go, he argues that low-end cannot currently run Windows, therefore manufacturers deliver them with Linux thereby providing additional cost savings, he also notes that Microsoft can reduce the price of Windows to stay competitive, however, he claims, it would still not be enough of a total price reduction because of the costs of the hardware needed.
This is where I have a problem with his claims, as Moore’s law projects, the low-cost PCs will be able to run Windows soon enough, so Linux advantage here can only be temporary rather then long-term.
In his cost analysis SJN show a case where Linux offers a neat 50% of cost savings, however, I must ask, if by coupling cost-reduced Windows with slightly more powerful, yet cost-effective PCs, Microsoft is able to provide an offer that is just 20% more expensive, won’t the assumed familiarity benefit of Windows be enough to justify the additional costs for most businesses?

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