Microsoft crafts new mobile strategy with Yahoo! to take on Apple iPhone

“There’s more to the proposed takeover of Yahoo! by Microsoft than a scramble for advertising dollars. There’s something in the air,” Elizabeth Woyke reports for Forbes.

“Microsoft would benefit from Yahoo!’s online capabilities, say experts. ‘Microsoft has had more success with mobile operating systems than in mobilizing its Internet properties,’ says Avi Greengart, research director of mobile devices at Current Analysis. ‘The Yahoo! Go platform would be a pretty nice fit,'” Woyke reports.

“A match-up would also send a clear message to Apple and Google. Though a small player, Apple’s revolutionary iPhone has shaken up the mobile space in less than a year. Google is Microsoft’s and Yahoo!’s chief competitor in the potentially extremely lucrative mobile search and ad space,” Woyke reports.

“Apple’s 4 million iPhones pales against the 20 million Windows Mobile licenses Microsoft says it will ship in 2008. That makes Apple a challenger more in mindshare than marketshare, says Greengart. Even so, it’s an ‘incredibly dangerous competitor,’ because of the tremendous amount of innovation it brought to market,” Woyke reports.

Full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

Nice try. Now for the truth. Apple has shipped over 4 million iPhones so far. Apple’s goal is to ship 10 million iPhones in 2008.* That would be half of all Windows Mobile phones that Microsoft claims will ship (including all of the so-called “smartphones” and many dumbphones inflicted with Windows Mobile today) with just one iPhone model (or two, come 3G, probably in May or June). BTW, if a phone running Windows Mobile is a “smartphone,” Apple’s iPhone is the “Einsteinphone.” Apple is already the leader in mindshare and a serious challenger in market share. Microsoft has been at this for years. Apple has only been shipping phones since last June.

Apple’s usage share of mobile devices online is a rapidly-growing 0.17% (iPhone+iPod touch) which is now nearly triple that of Microsoft’s stagnant 0.06% (stuck at 0.06% since June 2007).

*Apple CEO Steve Jobs said in his Macworld Expo 2007 keynote address that Apple would set the goal of selling 10 million iPhone units in 2008, the first full year on the market. (Macworld Expo 2007 iPhone Introduction: Jobs’ remarks on iPhone goals begin at 1:15:52 into the QuickTime video). On July 25, 2007, during Apple’s conference call discussing Q3 – 2007 financial results, Apple CFO Peter Oppenheimer reiterated Apple’s goal of selling 10 million iPhone units in “calendar 2008.” (Apple’s Q3 07 Apple Quarterly Results Call: Oppenheimer’s remarks on iPhone goals begin at 6:05 into the QuickTime audio stream).


  1. No consumer had any need of a smart phone till the iPhone came out.

    So apple is picking sales up from where the smart phone industry tried very hard to tap in.
    There are now university students using iPhones, where as previously, there was no need, since wifi for emails, was readily accessable via wifi at uni.

    The iPhone, was never designed for businesses, otherwise Apple would have extended iWork on it when it was launched. It was designed to take market share, just like the apple 2, so that there’d be more 3rd party software.

    I currently know of only one person of the dozen, that threw their blackberry away to buy an iPhone. Every iPhone user I know are first time smart phone users.

    The blackberry is still used by the rest of my friends in finance.

    But the Law students are now picking up iPod touches, because the university is setting up an apache server to place PDFs in.

    And the more I look at it, the more I see social engineering being created. This is how exactly the iphone was designed. Apple knows how to play smart.

    The winning shot isn’t about which product is better, its how much market share the iPhone can take, and once it overshoots to a point, there’ll be venture capitalists that will force smaller software companies to make microsoft office equivalent software for iPhones and iPod touches. Because theres a lot of money to be made in them.

  2. Great, so after a year of regulations, another year of people consolidations/firings/hirings MicroHoo will be ready to DESIGN a new mobile phone ready for release in another two years, say 2011. Android and iPhone will be 4 years ahead and MS will still be the distant follower, but with a reducing marketshare.

    P.S. I threw out my Windows Mobile smartphone (O2 XDA). Last year I went back to my old Nokia and an iPod Touch. Mail syncs very nicely and I am always near WiFi.

  3. I too, as a consumer, would have preferred greater choice of wireless providers for my iPhone.

    However, Apples approach appears to be how much can they make per unit, not how many units they sell. With the exclusive arrangement, they are able to capture a revenue stream from each iPhone sold from ATT.

    Smart. Very smart.

  4. “A match-up would also send a clear message to Apple and Google.” “There’s something in the air,” Elizabeth Woyke reports for Forbes.

    Does MS pay people to write this stuff? What would the clear message be? “Beware. they will copy you.” “Why, in just a few years they will offer a copy of what you developed over the last couple years.” “You can’t just go upsetting the status quo you know. They are Microsoft. People own billions and billions in their shares. They cannot just be replaced by value in shares of other companies like Apple and Google. Those companies do not even play the game right. Goggle doesn’t split its stock again and again. Apple does not even talk to us annalist’s, much less buy us lunch and stuff.”

  5. Save us from Microsoft’s vision of the future: Advertisements! Everywhere! Do they really not have more vision than that? I agree with Job’s statement (on youtube) that the problem with microsoft is they don’t incorporate culture into their products. Echoes with some of the earlier comments to this article.

  6. “Apple’s 4 million iPhones pales against the 20 million Windows Mobile licenses Microsoft says it will ship in 2008.”

    EVERYTHING pales in comparison to what Microsoft says it WILL ship. That’s why they say it.

    But that means nothing since they only realize about 20% of what they promise, and then they implement poorly.

  7. I’ll take the “David Bohm Phone” for a thousand.

    OS X and Android will eventually squeeze Windoze Mobile out of the marketplace and the cellphone/smartphone-using public will be much better served.

    Can’t wait!


  8. With over 1 million unlocked phones, that shows the one carrier policy hasn’t stopped anyone from getting what they want. To those whiners, why not do what 1 million braver people have done? Right, you’re just whining because you never planned to get an iPhone anyway.

  9. @ Bioness;
    When I get my iPhone it’ll be my first smartphone not because I “have no use for one” but because until the iPhone there’ve been none that delivered the things I want, primarily ease of use. My RZR (ugh) CAN do virtually everything that I’ll be doing with the iPhone, it’s just so difficult that I DON’T do any of that stuff. As for the business users, many of them didn’t volunteer for a Crackberry or Treo, but were issued them and told they better answer email in their sleep. So thye didn’t have a choice, a situation that most of them are still in. I just set up the iPhone my mom got from Sun and she called to thank me before the day was out because the user experience is so much better than her RIM device.

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