We look at Microsoft’s first attempt at making a smartphone since dropping the Nokia title after the buyout
By: Larry Darrell
It’s been a short while since Microsoft (NASDAQ:MSFT) decided to remove the “Nokia” name from its smartphone business. But the Redmond-based tech giant shows no intention of slowing down, as it announces, and prepares for, the launch of the first smartphone that will drop the Finnish phone company’s title in favor of naming the series "Microsoft Lumia."
In the past, Microsoft has struggled to find a place in the market for its Windows Phone operating system, which, according to third-party analysts, is used in only 2.5% of mobile devices across the world. Google Inc.’s (NASDAQ:GOOG) Android leads comfortably in first place with an 85% share, followed by the many millions of iPhones running Apples Inc.’s (NASDAQ:AAPL) proprietary iOS.
Most of the phones released by Microsoft have only found a place in developing markets, where people just recently got a taste of what smartphones have to offer – their main appeal being the colorful covers and looks.
In more mature markets, Microsoft hasn’t made a significant impact, with brands like Apple and Samsung Elect Ltd (F) (OTCMKTS:SSNLF) taking the lion’s share. Microsoft’s smartphone business is also under threat from Chinese competitors in emerging markets, which offer decent quality phones and impressive specifications at a significantly lower price.
For now, it seems like Microsoft intends to stick to its previous strategy, which could be considered a questionable move by some. The company announced, “Microsoft is delivering the power of everyday mobile technology to everyone. Come back on November 11, to find out more!”
While the wait till next Tuesday is certainly on, sources say that Microsoft’s new phone will be far from a game changer. As rumors have it, it will have a 5-inch display of around 960 x 540, coming out to be an unimpressive 280 pixels per inch. The core will be quite mediocre as well, with a 1.2 GHz Snapdragon 200 Chipset and 1GB RAM. The phone will feature 8GB internal memory and a 1900 mAh battery. Even the camera isn’t much to look at, with a 5 megapixel primary and VGA secondary front snapper.
The one thing that the phone does have going for it is its price, which is expected to be around $100-150 off contract. However, unless Microsoft makes some serious upgrades to the Windows Phone operating system, the new phone may not do very well.
Once again, Microsoft gambles with a low-end device, which is strange considering that just last week, two Chinese smartphone manufacturers – Xiaomi Inc. and Lenovo Group Limited (ADR) (LNVGY) – traded places as the third and fourth largest manufacturers in the world.
Lenovo and Xiaomi specialize in devices that offer much better specs than the phone Microsoft intends to offer. The two pose a serious threat to the tech giant’s business in the emerging markets. And as it is, Samsung and Apple’s premiums lines are often the phones of choice for many in the US, UK, and Europe.
While the release of Microsoft’s new phone doesn’t make earlier versions of the Lumia series such as the 1020, 1520, and 920 irrelevant, these old phones remain the best Microsoft has to offer to mature markets, and they haven’t been updated in a while. In the meantime, Samsung and Apple have been busy updating their devices year after year.
Microsoft has had a mixed experience with hardware. Consoles such as the Xbox and Xbox 360 performed extremely well, while the Xbox One (like some of its phones) was a bit of a disaster. The Surface tablet initially started off slow, but sales have picked up 127% since the release of the Surface 3 Pro.
November 11 and the months following it will show how well Microsoft’s rebranding efforts pay off for its smartphone business.
No comments:
Post a Comment