Microsoft wants 40% of the Smartphone market by 2012. Sure, okay.

Posted on Tuesday, May 13, 2008 by Malatesta
 
Filed Under: News; Tags: industry news, micorsoft

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In the biz of "smarthphones", 2007 and 2008 has really shored up competition. Word is MS has set a goal to have 40% of that market by 2012, which is...uhhh... very ambitious since at last count they have about 13%.

Sure, why not? Shoot, lets just set any number, it's not like companies actually have to live up to such goals. As long as MS moves up from 13% to anything higher, it'll be seen as a success.

Of course I've always had problems with such statements, namely what defines "smartphone" is often left out. Does MS even bother to consider the iPhone to be a smartphone (we know that debate has raged in the forums for quite some time)? What about how RIM's market share is exploding, Android is warming up at bat and last I checked Symbian is actually fairing quite well (except in the States)? Then you have those pseudo-smartphones e.g. Sprint Instinct, which only blurs the distinction.

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Then there's that whole fractionation of the market into consumer (low end and high end) and business devices. MS has certainly taking aim at enterprise but only occasionally dipped their toe into the consumer market, something which WM7 will supposedly change. At least MS has HTC in their pocket to help things along--their market performance shouldn't be discounted either.

So which phones and which market segment are we talking about exactly?

Lets check back in 2012 and see if any of this came to be, but personally I'm not betting on anything--hey, who knows, "Nova" could be absolutely amazing ; -)

Thoughts?

 
 

Comments

I think this is possible considering the Palm OS is dying a lsow death. If MS makes the desired changes to broaden the apeal and stabilityof WM they will have a shot. The act that the iPhone is locked to AT&T will also help.
Seems rather unlikely. Its easy to increase sales by 50-100% every year (They sold 11 million in FY 2007 and are confident of selling 20 million in FY 2008) but that does not translate into market share growth because the market itself is growing at the same tremendous rate.

MS is likely to sell at least 25 million in calender year 2008, and HTC is rumoured to expect to sell around 4 million Touch Diamonds in the last 6 months of 2008 alone.

Surur
More power to them. I wish Microsoft well on this endeavor, but if my experience over the past six months with an AT&T Tilt is any indication they have a lot to overcome. Microsoft needs to get serious about the end user experience and get their device makers in line. The fact they let HTC and AT&T release the Tilt with serious performance problems it has is not something that can continue. Especially when they are up against RIM and Apple, two companies who seem to care a great deal about the end user experience. Microsoft needs to get a handle on device makers who release substandard products and carriers who sell these devices loaded down with garbage trialware. Until then, Microsoft is doomed to become the same bit player that Palm is.
Symbian is still the 800lb gorilla of operating systems because Nokia is still the 800lb gorilla of handset manufacturers. Nokia does well outside the U.S. because for the most part, phones and service are separate businesses giving manufacturers like Nokia leverage that they just don't have in the U.S., that is, until Apple came along. Not too long ago, Nokia became so frustrated with its failure to penetrate the U.S. market that they sacked and replaced almost all their stateside sales force in an attempt to reformulate and better align their business plan with the U.S. carrier cartel. So far, the changes haven't improved Nokia's fortunes.

Apple has really changed the game. They've retained control of the iPhone, the reason Verizon, the first carrier approached by Apple, passed on the device. Apple provides excellent customer service and has continued to improve the iPhone, enhancing features and introducing new ones through frequent OS updates. The importance of this can't be over emphasized: Apple is treating the iPhone for what it is, a small hand-held multi-purpose computer and communication device which is upgraded through regular OS updates and third party applications. No other mobile phone manufacturer or carrier is doing this to the extent Apple is and this is the most important innovation that Apple has brought to the mobile phone market.

Microsoft is neither a carrier or a handset manufacturer. The only leverage it had, an innovative mobile OS when it first appeared in Pocket PCs like the early Compaq iPAQs, has been squandered by little innovation since then. Windows Mobile may be further hobbled by the real possibility that the day of specialized operating systems on smart phones is coming to end: witness OS X and Java (Android).

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