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August 20, 2009 12:48 PM

Microsoft Will Push Two Versions of Mobile OS, Say Rumors



Microsoft's new strategy for the mobile market, if rumors prove correct, will involve porting two separate mobile operating systems onto smartphones. Could it serve Microsoft's attempts to solidify its falling share in the mobile OS market space? That's a big "maybe" - especially since Microsoft's previous mobile strategies have the potential to place a howitzer against Redmond's own foot.

According to an Aug. 19 article in the Digitimes, Microsoft's upcoming strategy against Android and the iPhone OS involves dual Mobile OS platforms: Windows Mobile 6.5, slated to launch at the beginning of October, and "Windows Mobile 7" due to roll out in the fourth quarter of 2010.

"Sources at Taiwan handset makers" apparently told the article's authors that the "dual-platform strategy will allow Microsoft to compete with Android-based platform using Windows Mobile 6.5 and also compete with iPhones leveraging Windows Mobile 7."

Given the relative paucity of rumors leaking about the potential capabilities of Mobile 7, which will supposedly provide a "premium" mobile experience centered on multitouch, it's difficult to evaluate the effectiveness of this proposed strategy; but I can see one big challenge that Microsoft faces in implementing it: providing a big enough ecosystem.

It's a timing thing. When Microsoft launches Windows Marketplace for Mobile in October, it hopes to have 600 applications available for download - one of the reasons why it opened the store to application submissions from developers in July. Even if those 600 are ready to go, however, Microsoft will still find itself playing a substantial game of catch-up against Apple, Research In Motion and Palm, all of whom have been building their own mobile-application ecosystems for months or (in the case of Apple's App Store) over a year.

How could Microsoft overcome its rivals' ecosystem advantage? If Redmond tied the launch of Windows Marketplace for Mobile, or even Windows Mobile 7, to a particularly hot smartphone (something with a form-factor and functionality that could compete with the Pre or next-generation iPhone) then the resulting momentum might allow them to make a significant marketplace dent. Take the Palm Pre as an example of how to correctly execute this particular rollout model; launched along with Palm's Web OS and a memorable-yet-creepy ad campaign, the device posted solid sales and app-download numbers in its first month of release.

Rumors of a Microsoft smartphone have seemingly been drifting around the Internet for months, most of them centered on "Project Pink." If the scuttlebutt turns out to be grounded in some sort of reality, then the resulting device will need something to truly differentiate itself within the smartphone market - and by "something," I don't mean the iPhone's newly discovered "iGrenade" App.

But then Microsoft has another issue: its recent deal with Nokia. The partnership to roll out a mobile version of Microsoft Office onto Nokia's phones (which run Symbian, not Windows Mobile) may seem like a solid way for both companies to compete effective against RIM - but once you start porting your key functionality onto devices not running a version of your operating system, you rob potential customers of a reason to acquire a device with your operating system.

Other manufacturers recognize this principle, which is one of the reasons why Apple seems so determined to shut down Palm's ability to run iTunes on the Pre. But if Microsoft continues to export applications onto other operating systems, it could ultimately hurt Windows Mobile - and any future smartphones using it.

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Comments (3)

Title of article says: "Microsoft Will Push Two Versions of Mobile OS, Say Rumors"
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Windows CE, whoops, its been "RENAMED" to Windows Mobile or WinMO, or maybe Zunephone this week, who knows. But the point is by Nick's own words: ""Windows Mobile 7" due to roll out in the fourth quarter of 2010." Yes, this means that its vaporware. It could happen, but why does MS push a 7 version when the 6.5 is not even out until Oct.? Is 6.5 going suck so bad that MS needs to talk about future version 7 even before 6.5 is out? Great strategy from MS btw.

Nick also says: "Rumors of a Microsoft smartphone have seemingly been drifting around the Internet for months, most of them centered on "Project Pink."
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Wonder where MS came up with that clever name to replace the Zunephone rumored one. Even MS rumored projects now have to be "RENAMED" often. Well I guess MS has figured out that the Zune name has about this much appeal going for it, so why not rename. Project Pink or the Zunephone, might be a step in the right direction. Its the hardware that sells and makes money in cellphones, not the operating system. MS Windows Mobile/CE is a loser as far as profits, and the best thing MS could do here, is to pull out and cut its losses. The next best thing, would be to enter the hardware market and make the Zunephone.

Not, to sub it out and let some Chinese company make it and put the MS name of it, that's still not going make a whole lot more profit for MS. MS actually needs to buy a company that makes these cell phones. Also, the carrier that your phone selects is another big source of income, and MS can only make contracts with those, as it does not own an carrier. Should MS decide to become more of an "hardware" company, I sincerely hope that MS does a better job of engineering and quality control than it did with the problem prone XBOX360. RROD, E74, and scratched up disks come to mind right away, so its a scary thought of thinking of MS manufacturing a cellphone.

James :

It’ll be interesting to see if the UI from the ZuneHD can be expanded into a proper smartphone OS. September’s looking like an interesting month…

Mog0 :

I'm guessing these "rumours" about keeping two versions of Win Mobile in the marketplace at the same time probably came from the recent video on the enquirer where a Microsoft guy demonstrated Win Mobile 6.5 and said that they were going to keep 6.5 and 7 in the marketplace at the same time and then keep two versions going into the future, the latest as the premium option and the previous version as the budget option.

I'd say there were a few clues in there.

Mog

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