Microsoft today unveiled its Windows Phone 7 operating system for mobile phones that is now available on 9 different handsets. It is an aggressive move by the company, but it may be the very first time when the company is simply too late to an important market and is not strong enough to assume control – with one exception. It is not really clear that Microsoft will follow this path and will not be distracted by the iPhone and Android. [Slideshow]
Windows Phone 7
Last year, I was sitting in the audience of the Executives Club of Chicago, when Steve Ballmer was asked the question about his biggest mistake and what he would do if he could turn back time. Back then, he said he wished he could start with Search earlier. Today, Bing – which he described as the little engine that could – is gaining ground on Google and Yahoo, but Microsoft’s real problem is the mobile operating system. One day, we may be carrying our most important computers in our pocket and it is clear that this market is increasingly divided between Apple and Google, while Nokia tries hard to keep its global market leadership and RIM tries to find its way again. Microsoft currently has a smartphone market share of about 5%, according to Gartner.
Microsoft takes another shot at the smartphone market with Windows 7, which was released today with nine different handsets, which will be available in the following markets in the “holiday timeframe”:
In North America:
AT&T
HTC Surround, United States
Samsung Focus, United States
LG Quantum, United States
T-Mobile USA
HTC HD7, United States
Dell Venue Pro, United States
TELUS
HTC 7 Surround, Canada
LG Optimus 7, Canada
América Móvil
LG Optimus 7, Mexico
In Europe:
O2
HTC HD7, United Kingdom, Germany
Orange
HTC 7 Mozart, including France, United Kingdom
Samsung OMNIA 7, including France, United Kingdom
SFR
HTC 7 Trophy, France
Samsung OMNIA 7, France
Movistar
LG Optimus 7, Spain
HTC HD7, Spain
Samsung OMNIA 7, Spain
Deutsche Telekom
HTC 7 Mozart, Germany
Samsung OMNIA 7, Germany
Vodafone
HTC 7 Trophy, including Germany, Spain, United Kingdom
LG Optimus 7, including Germany, Italy, Spain, United Kingdom
In Asia Pacific:
SingTel
HTC HD 7, Singapore
LG Optimus 7, Singapore
Telstra
HTC 7 Mozart, Australia
LG Optimus 7Q, Australia
Vodafone
HTC 7 Trophy, including Australia
Microsoft’s approach to the smartphone follows a simplification theme. “Windows Phone 7 (WP7) breaks the current smartphone convention to help people quickly and easily find and consume data, information and services from the Web and applications. The new phones are distinguished by unique design and integrated experiences built from Microsoft’s deep portfolio such as Xbox Live, Microsoft Office Mobile, Zune, Windows Live, Bing and more.” WP7 includes Live Tiles on the start screen, which provide the foundation for a customizable interface. New Live Tiles can be easily created from whatever content a consumer wants, such as applications, websites and music. The software also integrates the Zune platform to enable access to music, there is a tight integration of search, and the connection to Windows Live provides access to cloud features such as picture management, a calendar or OneNote Mobile.
What struck us about WP7 is the Microsoft’s approach to be different by being better than its rivals. However, on a closer look, WP7 is a me-too-product at this time that is simply an alternative with very few real advantages over its competition. Microsoft has a history of wanting to be everything to everyone and that may not be a winning recipe in the smartphone market, given the strength of Apple and Google. It is somewhat surprising to us that Microsoft is not putting more effort behind its Xbox Live integration, which is a true differentiator with potentially huge appeal. Neither Google nor Apple could follow Microsoft into this space at this time, yet Microsoft isn’t highlighting this feature enough.
If we believe the current market trend, then it may be Apple and Google that are capturing the mindshare and market share in the foreseeable time. Plus, we will have Nokia/Intel, RIM and HP/Palm that are competing for the interest of the consumer. Microsoft will have to exploit its strengths and weaknesses of its rivals, if it wants a chance in this cut-throat market. More of the same and a certain number of phones will not cut it for Microsoft. Xbox Live is the obvious advantage and the feature Microsoft needs to advertise before trying to be an option to Android or the iPhone.
To compete with Android and the iPhone in the traditional smartphone view, Microsoft is at least one year too late to the party. Pitching Xbox Live will be an uphill battle for Microsoft, but perhaps the only opportunity to get traction. In fact, we would be very surprised if Microsoft could capture more than 10% of the global smartphone market even with a successful implementation of Xbox Live. To do more, Microsoft would need a much more innovative platform with fewer limitations (tethering is not supported, for example) to be an enticing product. It would take a vastly different product, such as Mozilla’s Seabird concept phone to be a threat to Apple or Google.
You can leave a response, or trackback from your own site.
