Yes, Google’s sales dropped in the 4th quarter but they out performed expectations. There is no doubt that Google Chrome and Android have been a big part of their sales numbers over the last three months. However, with sales down it’s clear that there is an obvious financial impact to Internet sales since Google makes most of its revenue from advertising mechanisms like Adsense and web hosting like Blogger.

With Microsoft’s layoffs of 5000 employees things are looking a bit tough for Internet based companies.