Microsoft's next big headache: The Google Chromebook

Chromebooks, Google's cheap, modestly powered laptops, make up just a tiny percentage of notebook sales. But Microsoft is freaking out about them.

Late last year, Microsoft (MSFT, Fortune 500) launched a seemingly random, preemptive campaign against Chromebooks in a series of TV commercials. The ads attacked Chromebooks' lack of functionality and compatibility compared to Windows.

At the time, the ads seemed unnecessary: About 90% of the world's PCs run Windows. But fast forward six months, and it's becoming clearer why Microsoft is trying to nip this threat in the bud.

An NPD report indicated that Chromebooks accounted for 21% of commercial U.S. notebook sales last year, though that only included sales in business and education spaces.Lenovo (LNVGF) and HP (HPQ, Fortune 500), two of the biggest PC makers, have added Chromebooks to their laptop lineups over the past year, joining Samsung (SSNLF) and Acer. Google's (GOOG, Fortune 500) Chrome OS itself continues to grow more and more functional by the day.
And at the beginning of March, Samsung released its 13-inch Chromebook 2, which aspires to be more than just an entry-level, bargain laptop. Equipped with a 1080p high-definition display and Samsung's top mobile processor, Samsung is confident its Chromebook can go toe-to-toe with a comparable Intel (INTC, Fortune 500)-powered device.