No supporting evidence makes me skeptical - what were they buying before and how has it changed?
Beyond that, a retail computer shop closing isn't surprising - computer shops have been a high risk proposition for...well, forever. But one which limits itself to Linux, what were they competing on? Mostly price, it looks like. Otherwise paying for machines with Windows wouldn't be likely to break sales.
And that's the problem with Linux in the mainstream. People expect Linux computers to be cheaper and that means that for the same margin, revenue is lower - it's a race to the bottom and it has to compete with HP. Throw in the much smaller size of the market segment for Linux and it just doesn't make sense as a business model.
Don't get me wrong. Running a Linux only computer shop is not wrong. It needs to come about out of love - like a coffee shop, a B and B, or a used book store.
Beyond that, a retail computer shop closing isn't surprising - computer shops have been a high risk proposition for...well, forever. But one which limits itself to Linux, what were they competing on? Mostly price, it looks like. Otherwise paying for machines with Windows wouldn't be likely to break sales.
And that's the problem with Linux in the mainstream. People expect Linux computers to be cheaper and that means that for the same margin, revenue is lower - it's a race to the bottom and it has to compete with HP. Throw in the much smaller size of the market segment for Linux and it just doesn't make sense as a business model.
Don't get me wrong. Running a Linux only computer shop is not wrong. It needs to come about out of love - like a coffee shop, a B and B, or a used book store.