Microsoft’s Windows Mobile circling the bowl?

“In the last quarter, the iPhone and Research in Motion (maker of the Blackberry) overtook Windows Mobile, while Nokia remains comfortably in first place in smartphones. At the end of the June quarter, Microsoft had to admit that Windows Mobile missed it self-set target of 20 million by 2 million,” Tim Nash writes for Low End Mac.

“In today’s mobile market, Microsoft is already outpowered by Apple’s financial returns,” Nash writes. “Last quarter Apple sold 6.9 million iPhones at an average price of over $650. With a margin of over 50% (analyst Charles Wolf of Needham & Co), this generates gross profit of over $2.2 billion. In the year up to June 30, Microsoft sold 18 million Windows Mobile licenses for $8-15 per license (Strategy Analytics) for a maximum of $270 million. With RIM reporting gross profit of $1.3 billion and Nokia selling 15.5 million units (mainly N series and E series) in their respective last quarters, Microsoft is falling more and more behind just as the market is expanding.”

Nash writes, “Windows Mobile 7 has been delayed. HTC, the Android G1 manufacturer, expected to release a WM7 handset in Q1 2008. Now the next release will, in the words of longtime Microsoft follower Paul Thurrott, “allow smart phones to render Web pages like they did almost a decade ago on traditional PCs”. The interim version after that looks as though it will ship in late 2009 (ZDNet’s Mary Jo Foley). It looks like too little too late. The iPhone will be through the annual update by then, and the App Store will be closing in on or already past 1 billion downloads.”

Full article here.

56 Comments

  1. I doubt it. The thing we try hard to forget on this web site is that MS is ubiquitous, and they are firmly entrenched. Look at the Zune, a total failure in my book, but, I can still go to Wal-Mart and buy one. It’s a company that can afford to throw money away – and it does. I keep wondering if it’s even possible for them to run out of cash and assets, even if Windows fails I wonder if they’re just so well off as a company that they could stay afloat indefinitely. I guess we’re going to find out.

  2. I can’t stand M$ either, but this is apples and oranges. M$ doesn’t not make a hardware phone, only the software. That makes it hard to compare income. Now if they did make a zunephone, we know it would suck so that’s probably why they don’t.

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