Microsoft CEO Predicts Microsoft Phone as Rapid Success

Microsoft CEO Predicts Microsoft Phone as Rapid Success

By UCStrategies Staff November 9, 2012 Leave a Comment
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Microsoft CEO Predicts Microsoft Phone as Rapid Success by UCStrategies Staff

On Monday, Microsoft CEO Steve Ballmer announced that the Windows Phone will spread and grow rapidly throughout the smartphone market.

Although they are “still relatively small,” he expects “the volumes on Windows Phone to really ramp quickly.” He made this statement during Tel Aviv’s Windows 8 launch event.

He claims that their previous work with HTC, Samsung, Nokia, and other mobile handset companies has paved the way to “create a really strong third participant in the smartphone market.”

Analysts note that such optimism is not surprising coming from Ballmer.

IDC analyst Ramon Llamas, however, gives his slightly more conservative view of the new phone’s operating system.

In his words, “Windows Phone 8 is a great platform, well differentiated, well designed and a lot of fun to use. I just have reservations as to how well the messaging around WP8 can be carried out and if it's enough to convince end users to make the switch, especially if they're already into Android and iOS.”

Other analysts make the point that Android and Apple’s iOS operating systems have a significant head start in the market, not to mention more apps.

In an updated prediction from October, IDC forecasted that Windows Phone will increase from 3 percent this year to 14.2 percent in 2016 within the global smartphone market. This number means that Android would continue to lead the pack with 58.6 percent, iPhone would be ranked second with 21.2 percent, and the Windows Phone would take third.

This information is supported by the Gartner research firm who also said that Windows Phone would capture 13 percent of the smartphone market in 2016. Additionally, this firm placed Windows Phone as ranking third by that year.

IDC anticipates that Windows Phone could jump into third place as early as 2013 if they secure 6.6 percent of the market. This is partially contributed to BlackBerry’s decline, holding only 4.7 percent market share.

Llamas also believes that a third place ranking in the global smartphone market is “a big deal.” This is partially due to the fact that carriers can only stock so many devices on their shelves and they are more likely to choose the Windows Phone 8 over those which are less popular.

If Microsoft can convince their customers that a Windows Phone 8 is an integral part of the overall Windows 8 ecosystem, including tablet devices, then it could work to the company’s advantage.

Microsoft also needs to demonstrate the value of its new mobile operating system, according to Llamas, as Ballmer has done for an online ad promoting Windows Phone 8. This ad, which went live last week, also highlights the “live tiles” feature on the interface.

Llamas stresses that Microsoft does not need to create more promotional material like that of the Surface RT tablet. While the TV commercial is attention-grabbing, it lacks substantial information about the interface. He concludes by saying that “it leaves me asking, ‘What’s so great about this?’” (RP) Link

 

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