“Last week Microsoft and Nokia unveiled an alliance taking Microsoft’s Office applications — including Word, Excel and PowerPoint — to a range of Nokia cellphones from next year,” Tarmo Virki reports for Reuters.
MacDailyNews Take: In response, the thinking world issued a collective yawn.
Virki continues, “‘It’s possible that Microsoft has accepted it is not going to succeed in the mobile OS race, particularly now that HTC and Samsung seem to be sneaking into the Android party,’ said Tero Kuittinen, analyst at MKM Partners.”
“Though Microsoft says its is committed to Windows Mobile, the Nokia deal is being read by many as a signal the company wants to limit its involvement,” Virki reports. “The arrangement also jeopardises sales of smaller handset makers like HTC who have focused on Windows phones.”
MacDailyNews Take: This is what happens when you make the sales guy the CEO.
Virki continues, “Microsoft has tried to conquer the mobile operating system market for years, but despite heavy investments its success has been limited… In the last two years the success of RIM’s Blackberry and Apple’s iPhone has pushed it to No 4 in the market, and Android has started to make headway. ‘The Nokia deal could marginalize Windows as a mobile operating system even further,’ said Kuittinen.”
Virki reports, “All manufacturers in total sold just 3.8 million Windows phones in April-June quarter, according to research firm Gartner, giving Windows a 9 percent market share among smartphones.”
MacDailyNews Note: In the same quarter, Apple sold 5.4 million iPhone units which was a 509% (not a typo) increase in shipment growth year-over-year.
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Virki continues, “‘I see this as a tacit admission from Microsoft that WinMo hasn’t made the grade. I am becoming more concerned about its future and I worry that Windows Mobile 7 could even be the last throw of the dice,’ Gartner analyst Nick Jones wrote in a blog. ‘Imagine you’re (Microsoft CEO) Steve Ballmer, and in two years time WinMo was still 4th in smartphone market share. How much longer would you keep throwing money at it?'”
MacDailyNews Take: Imagine you’re Steve Ballmer? Shudder. Oh, alright: “How much longer would I keep throwing money at it? Uh, duh… F-f-forever? Like the super innovative and spectacularly-performing Zune franchise which has something like 99% share of geek joke gift market? No, I mean, yes, I don’t really know, I’m just winging this whole thing, if you haven’t noticed. Did I tell you that I run every morning? Oh, yeah: WINDOWS MOBILE! WINDOWS MOBILE! WINDOWS MOBILE! I LOVE THIS COMPANY!!!”
Virki continues, “Strategy Analytics estimates Microsoft charges between $7 and $15 per phone from handset vendors — meaning Windows Mobile created at best revenues of $57 million in the last quarter from $13.1 billion for the group”
Full article here.