Microsoft is making a sharp turn in its strategy for smartphones
Tomorrow presentation of the new smartphones will be the next Microsoft effort in building a successful mobile strategy. The new approach boils down to two words: redefining success, writes Wall Street Journal.
The event, which will take place in new York, Microsoft plans to announce at least two of the Lumia smartphone that will be positioned in high class.
After many years of working on smartphones for the mass market for the first time, Microsoft will focus on a particular niche, particularly in business, where the company hopes that its smartphones will have a competitive advantage.
Microsoft’s plan is based on the capabilities of the new operating system Windows 10, which is the first to bring personal computers and mobile devices into one unified system.
For many decades the company has used a franchise Windows to control basic device – user personal computer. But since this function began to take smartphones, Microsoft was at a disadvantage.
The decision by Redmond to narrow the focus reflects an indisputable fact: Windows Phone sold poorly and does not bring enough income. When Microsoft stepped into the market by absorbing the mobile division of Nokia, the American company said that by 2018 will have 15% of the smartphone market. Later, the company abandoned this ambition.
On average, Microsoft has lost 12 cents on every smartphone sold in the quarter, which ended June 30. After a month, the software group acknowledged the error and announced a reduction of nearly 8,000 employees, mainly those working in the mobility division.
Microsoft CEO Satya Nadella said that the measures to reduce costs and the decision to stop trying to sell as many phones as possible will help the company to reduce losses. Microsoft will work to more effective and more targeted range of smartphones, said Nadella in an interview with the Wall Street Journal in July.
Skeptics argue that the reduction of ambition is not so much a choice as the need. Supporters of the company believe that Microsoft has a significant advantage – you can use Windows 10 to stimulate interest in smartphones with Windows.