Microsoft says Windows Phone will outsell Apple in China

“Microsoft Corp., the world’s largest software maker, said its Windows Phone operating system will propel it past Apple Inc. (AAPL) in China’s smartphone market as its partners release devices costing as little as $158,” Bloomberg News reports.

“Passing Apple is an ‘interim goal’ as the company’s longer-term objective is to supplant Google Inc’s Android as the local market leader, Simon Leung, Microsoft’s chairman and chief executive officer for the Greater China region, told reporters in Beijing today. He didn’t give a time frame for reaching the targets,” Bloomberg News reports. “Microsoft’s manufacturing partners will ‘definitely’ offer devices in the price range of 1,000 yuan ($158), Leung said, without specifying which partners or devices would meet the target. Rather than make its own phones, Microsoft supplies software to handset manufacturers including Nokia Oyj, Samsung Electronics Co., HTC Corp. and ZTE Corp., Leung said.”

Bloomberg News reports, “A 16-gigabyte iPhone 4S costs 4,988 yuan at Apple’s online store in China.”

MacDailyNews Note: Currently, an 8GB iPhone 4 costs 3,988 yuan and an 8GB iPhone 3GS costs $2,888 yuan in Apple’s online store in China.

Read more in the full article here.

MacDailyNews Take: We shall see how well Microsoft meets its goals – and which company continues to lead the world by a large margin (pun intended) not only in innovation, but in revenue share as well.

Unit share leadership is one thing (any company that can afford it, can always just give products away in a quest for unit share). Revenue share leadership is quite another matter altogether.

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49 Comments

  1. So basically they are saying that because they will be selling cheap crap, they will sell more than Apple. BUT – he who makes the most profit from devices sold is much more important.

    But hey, if it makes MS feel better.

    I like their strategy, I like it a lot!

    1. Yes, they want their OS on cheap crap. After all, they get paid for the software, not the hardware. It would make sense that they couldn’t care less about cheap handsets with little to no profit margins as long as they get paid for their software for each one of them.

      1. Do we know what the licensing fee is in this case?

        If it is a healthy fee, then I can’t see too many handset makers rushing to produce phones with their platform if they can continue to get Android for less. If they make it really cheap, then that means they will have to have their partners move a LOT of devices to make any money.

        To me, this just seems like delusional desperation. I guess we’ll see.

        Looking forward to seeing more details about the licensing fees.

      2. Similar, is Googles’ business strategy.
        I figure that is why MS sees Android a bigger threat.


        Apple beating Android in market share and performance of software and hardware is honest good competition.
        Already happened and continues. The battle now is in Asia.

        Apple defending its IP and forcing Android’s death is seen also as fair game. Both ways Apple still is winning.

        Apple killing Google could help Microsoft but it helps Apple also.
        Microsoft killing Android helps both Apple and MS making a new playing field for these two OSes to compete. Yet, Apple has not become weaker in market share nor in software. What does Windows 8 phone have… not much.

        — Seems to Apple has the upper hand here.

    2. Only from a financial point of view. Microsoft’s hardware is actually pretty good and they put strict standards on it, as opposed to the Android market, where everything goes.

  2. Yeah, Microsoft know what they’re talking about.

    Even if they did what good will it do them? A load of cheap phones which they will earn next to nothing on, they’re welcome to them.

    1. MS doesn’t make money on the cost of the phone. They make money from the license fee from the OEM’s and they make the same amount whether its a $500 phone or a $50 phone. IT’s the OEM’s that hurt, not MS.

  3. Yeah, just what the rising middle class in China wants: a cheap knock-off of the world’s most popular smart phone. “Got me some real money now, so let’s be stupid with it!”

  4. MS likely charges the same for the software license no matter how cheaply or expensively the phone is made. In this case, volume is all that matters. If they can do this it would be a real win for them, but not necessarily a loss for Apple. Both can win big. It is Android that is the loser if this happens.

    1. you are right, and MS could win really big, since (as far as the OS is concerned) a shipped phone DOES equal sold software/OS. Even unsold crap phones sitting in the warehouse or a dusty Best Buy stock room, the OEM manufacturer of the unsold phone has already paid for the OS.

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