Microsoft's Windows Phone Needs Different Strategy: Analyst
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Analyst Horace Dediu thinks Microsoft sold around 1.4 million Windows Phone units in the platform's first year of release. As he points out, that lowballs an earlier estimate from research firm Gartner, which plugged Microsoft's total number of smartphones sold in 2011 at 1.723 million, including both Windows Phone and the now-antiquated Windows Mobile. The more interesting (at least to me) part of Dediu's Oct. 12 posting on his Asymco Website, though, was his analysis of Microsoft's marketing strategy for Windows Phone. "The dependence on a complex value network means that products do not reach users quickly enough and when they do the marketing message is weak, even when backed by large budgets," he wrote. "The real problem with Microsoft's approach is that it's neither viral like Android (because it has a price and a contract associated with it) nor is it focused and agile like Apple's." In other words, he added, "it seems to suffer from the worst aspects of modularity (market lag) without benefitting from the control over the ecosystem and end user experience that differentiates it." Microsoft has been rather upfront lately about Windows Phone's market performance, although they still regularly decline to offer any sort of hard sales data. "It was under a year ago that we launched the first Windows Phone," Microsoft CEO Steve Ballmer told an audience of media and executives at this year's financial analyst meeting. "We haven't sold quite as many probably as I would have hoped in the first year." The company hopes its upcoming push, centered on the extensive "Mango" software update, will help it compete on a more equal level against Google Android and iOS. In coming months, new Windows Phones preloaded with Mango will arrive on the market from Nokia, Samsung and others. Microsoft likely hopes that this new effort will make up for the old. |
Comments (5)
The marketing for Windows Phone is non-existent. I see adverts on posters everywhere, TV, web sites, magazines for both iPhone and Android phones but nothing for Windows Phone. Very few people have even heard of it or ever seen it.
They might even want to consider dropping “Windows” from the name. It probably turns some people off. I know people who own Android devices who have no clue that they are buying Google because Google have invented a brand with no hard association to the Google name.
I have a WP7 HTC Mozart and love it. It disappoints me that MS don’t seem to be able to push the platform like they should be. The Blackberry/enterprise market must be ripe for the taking now.
Posted by Matt | October 14, 2011 5:24 AM
I'm amazed that Microsoft doesn't seem to value the relationship with Verizon. How can they not focus and invest in a relationship with the best mobile network in the US?
Posted by Josh | October 14, 2011 12:18 PM
I thought that was the point—Microsoft was consciously aiming for a “best of both worlds” approach, somewhere in-between the free-for-all of Android and the total lockdown of Apple.
What this guy is saying is that, instead of taking the best, Microsoft has ended up with the worst, of both worlds.
Posted by Lawrence D’Oliveiro | October 14, 2011 11:50 PM
I love the operating system for my windows phone. Would love to see 2 things; 1) I would love to see the bluetooth improved to the last standard 4.0 2) Would like to see Microsoft catch up to Iphone on the voice recongition(Siri). If Microsoft was to catch them in these 2 areas, it would draw many more users. I have to admit these were 2 items that seem to draw me into thinking about changing. I will stay with the windows phone and give Microsoft a chance to catch up.
Posted by Matt | October 15, 2011 9:14 AM
What's the point of wasting more money on WP7. Microsoft already makes big money with Android and the Android market share is growing fast. Without Microsoft investing any advertising in it (actually without investing at all for that matter :)
With Android Microsoft can recapture the market share it lost to Apple.
Posted by Lars | October 17, 2011 4:14 AM