More job cuts being announced at Microsoft

Discussion in 'Apple, Inc and Tech Industry' started by Rogifan, Jul 8, 2015.

  1. Rogifan macrumors P6

    Rogifan

    Joined:
    Nov 14, 2011
    #1
    So says the New York Times.

    http://www.nytimes.com/2015/07/09/technology/major-job-cuts-expected-at-microsoft.html?_r=1

    I think the handwriting was on the wall when Stephen Elop was let go and the hardware stuff was folded under the Windows team. There have been rumors that Microsoft would be writing down the Nokia acquisition. I wouldn't be surprised if we hear about that today.
     
  2. Ted13 macrumors 6502

    Joined:
    Dec 29, 2003
    Location:
    NYC
    #2
    Yup, they wrote down MORE than their entire Nokia purchase cost. Next: they will go out the phone hardware business.
     
  3. lowendlinux Contributor

    lowendlinux

    Joined:
    Sep 24, 2014
    Location:
    North Country (way upstate NY)
    #3
    Nadella is just making MS whole again, he got many years of things to correct.
     
  4. Rogifan thread starter macrumors P6

    Rogifan

    Joined:
    Nov 14, 2011
    #4
    Well his all employee memo says he remains committed to first party hardware. But that might just be lip service . I can see Microsoft keeping Surface but I think remaining in the phone business is futile. I think there's very little chance of them successfully competing in the premium segment of the smartphone market and the low end is dominated by Android. Microsoft should just focus on great apps for iOS and Android.
     
  5. lowendlinux Contributor

    lowendlinux

    Joined:
    Sep 24, 2014
    Location:
    North Country (way upstate NY)
    #5
    Removing choice is bad and dropping the phone business also dents their one OS on all devices. MS is all about convergence and the phone is integral to that.
     
  6. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #6
    He's fixing a major wrong that was committed by his predecessor - the purchase of Nokia. They'll still be making phones but as you can see by his prior actions Nadella is positioning MS as a software/service company across all platforms. That's why we're seeing more iOS and even android apps coming from MS under Nadella.
     
  7. Rogifan thread starter macrumors P6

    Rogifan

    Joined:
    Nov 14, 2011
    #7
    Sorry I don't see any situation where Microsoft becomes relevant in the mobile phone business. They had some success in Europe mostly because of Nokia brand and selling cheap phones. I don't see how they compete with Android at the low end and there no evidence that anyone outside of diehard Windows phone loyalists are interested in a premium Lumia or Surface handset. That's not a large enough market for Microsoft to make the investment. I suspect Microsoft will be out of the phone business within 2-4 years. Anything they're doing now is either because they had stuff already in the pipeline with contractual obligations they need to meet or it's a face saving measure. Seems to me Nadella's focus is software/services/cloud, not first party hardware.
     
  8. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #8
    MS is now about convergence and the phone or rather the mobile market is integral to that. Their convergence is not tied to the success of the windows phone but rather the success of their products on iOS and android. Have you noticed more and more unique features of the windows phones are now on the other platforms?

    There's less and less reasons today to buy a windows phone, not because they're not selling well, because many of the features that made it a good platform have been brought over to iOS and android.
     
  9. lowendlinux Contributor

    lowendlinux

    Joined:
    Sep 24, 2014
    Location:
    North Country (way upstate NY)
    #9
    I disagree with both you and Rogi but only time will tell whose right.
     
  10. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #10
    Consider this. MS wrote off nearly the entire cost of the Nokia purchase and virtually gutted the phone division with the layoffs. That's not a move my a company that believes in their mobile platform. Also consider the implications for developers, MS has been struggling with trying to convince developers to write apps for the windows phone. In fact developers have been abandoning it more then embracing it. True with windows 10, android apps will run on it but why would I want a windows phone to run android apps when I can get an android phone in the first place.

    The writing is on the wall, MS is moving away from handset business, consumers know, developers know it and now investors know it, given the write offs and layoffs.
     
  11. rdowns macrumors Penryn

    rdowns

    Joined:
    Jul 11, 2003
    #11
    Microsoft should have bought Blackberry, not Nokia.
     
  12. lowendlinux Contributor

    lowendlinux

    Joined:
    Sep 24, 2014
    Location:
    North Country (way upstate NY)
    #12
    MS wrote off Xbox loses for years also and is still making those. If MS doesn't have a presence in mobile they don't have a presence in the future.
     
  13. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #13
    They will have a presence ion the mobile market - software/services. Clearly they failed miserably with the handset market. I do not know about the xbox right off - I'm not a gamer but I think that's a different animal because they compete mainly against Sony.
     
  14. subsonix macrumors 68040

    Joined:
    Feb 2, 2008
    #14
    Traditionally MS has offered an OS built to a platform spec, and left the hardware to OEMs that could build to that spec. It was what made them successful to begin with, leaving their ties with IBM once the platform was "free" to use and clone. Building the hardware as well is pretty recent, (if you discount the XBox) and is more in line with what Apple has always done. Making their own hardware, actually makes them competitors to their OEM partners, which can't be good, especially for phones where there are viable alternative OSes around.
     

Share This Page