Windows Phone Can't Stop Microsoft Smartphone Decline: Report

Discussion in 'Apple, Inc and Tech Industry' started by *LTD*, Jul 6, 2011.

  1. *LTD* macrumors G4


    Feb 5, 2009

    Windows Phone Can't Stop Microsoft Smartphone Decline: Report

    Microsoft's share of the U.S. smartphone market is continuing to decline, according to research firm comScore. That's despite a push behind Windows Phone.

    Microsoft’s share of the U.S. smartphone market continued to decline through May, according to research firm comScore.

    For the three-month period between the end of February and the end of May, comScore estimated Microsoft’s U.S. share dipping from 7.7 percent to 5.8 percent. That comes despite the marketing push behind the Windows Phone platform.

    During the same period, adoption of Google’s Android platform rose from 33 percent to 38.1 percent, while Apple enjoyed a slight uptick from 25.2 percent to 26.6 percent. Research In Motion continued its market slide, declining from 28.9 percent to 24.7 percent.

    The top mobile OEMs, in descending order of market share, included Samsung, LG Electronics, Motorola, Apple and Research In Motion.

    Despite the softness in Windows Phone’s share, Microsoft is actively seeking another way to profit off the smartphone market: extracting royalties from Android device manufacturers. According to a July 6 Reuters report, Microsoft is demanding that Samsung pay $15 in royalties for every Android-based smartphone the latter produces.

    Microsoft insists that the Android platform infringes on a number of its patents, and has used its considerable legal resources to pursue manufacturers of Android smartphones and tablets. Some of those manufacturers, including HTC, have agreed to pay Microsoft royalties. Over the past 10 days, Microsoft has entered into a series of patent-licensing agreements with four other Android device manufacturers, including Wistron Corp., Onkyo Corp., Velocity Micro and General Dynamics Itronix.

    But some Microsoft targets have been more willing to fight back. Motorola retaliated to a Microsoft patent-infringement suit with an intellectual-property complaint of its own. And Barnes & Noble, whose Nook e-reader uses Android, filed a counter-suit against Microsoft after the latter sued it for patent infringement.

    In the meantime, Microsoft can only hope that its upcoming Windows Phone “Mango” update will increase the platform’s appeal to consumers and businesspeople. As Microsoft executives demonstrated for a small group of media and analysts during a May press event in New York City, Mango’s new features include a redesigned Xbox Live Hub, home-screen tiles capable of displaying up-to-the-minute information, the ability to consolidate friends and colleagues into groups, and visual voicemail—more than 500 new elements in all, if Microsoft is to be believed.

    Mango is due for release sometime this fall. Samsung, HTC, LG Electronics and Nokia have all committed to building new Windows Phone devices preloaded with Mango. Meanwhile, Acer, Fujitsu and ZTE have apparently agreed to produce Windows Phone units for the first time.

    However, chances are good that Windows Phones released during the fall timeframe will run head-on into Apple’s next iPhone, which current rumors suggest will launch sometime in September. At the same time, various Android manufacturers and Research In Motion are making concerted efforts to push their own devices into the ecosystem. To say this is a crowded marketplace is an understatement.


    On a percentage basis, it is a roughly 25% drop in market share from its previous tab of 7.7%. From a different perspective, Microsoft is losing 6% of its market share per month at the moment.

    While no one expected WP7 to gain immediate traction (it offered nothing game-changing in a crowded market, after all), it has now had sufficient time to salvage Microsoft's numbers, and it simply hasn't. Microsoft's been very quiet in recent months about sharing sales numbers, likely due to their being dismal. No one really knows how many WP7 handsets are in the wild.

    The market has changed and saturation has already taken place, with astounding speed.

    Obviously, we're all waiting for Nokia to kick in. WE are, of course, but are consumers?
  2. Rodimus Prime macrumors G4

    Rodimus Prime

    Oct 9, 2006
    One of the biggest problem I have seen for WP7 is that all the phone being sold with it are in Smart phone no man land. That is the middle of the road pricing.

    You either need to be 50 or less for the cheap end or you need to go high end at 200.
    The in between area just hammers them. The middle of the road market has destroyed.
    The OS is good and does offer a fresh way of doing things but they need to get some high end phones out. Rumors are around that there are some high end ones coming but they need to get here first.
  3. 0007776 Suspended


    Jul 11, 2006
    I think this will probably change when Nokia starts selling phones with WP7, it probably won't catch up to iOS anytime soon if ever, but I think they will do well.
  4. rdowns macrumors Penryn


    Jul 11, 2003

    Maybe but Nokia practically doesn't exist in the US. It's a huge hole for them and Microsoft.
  5. Liquorpuki macrumors 68020


    Jun 18, 2009
    City of Angels
    Funny how quickly the landscape's changed. Half a decade ago the smartphones to own were Palm Treos, Nokia Communicators, and RIM Blackberrys. 2011, these companies are either dead or dying.
  6. sysiphus macrumors 6502a


    May 7, 2006
    The irony is that a well-equipped WinMo 6.x smartphone is still one of the best platforms available for the hacker/tweaker crowd. I have no interest in Windows Phone 7, yet I still keep two of my older WinMo 6 phones around (Notably, a Toshiba Portégé with the best mobile keyboard ever, 310DPI screen (vs 324 for iPhone 4), fingerprint security, easy inbuilt tethering support without carrier consent/checking, SDHC, true multitasking, HSDPA...and did I mention it predates the iPhone 3GS by a year and a half? Remind me why a "Retina Display" is so groundbreaking again? :p). Sadly, the high-spec nerd phones lost out to looking cool/less features. I would have gladly kept shopping for the high-spec WinMo devices (though they wouldn't be an automatic purchase), but their current software direction holds no interest for me.
  7. sysiphus macrumors 6502a


    May 7, 2006
    Sad but true. The Nokia Communicator was the ideal pocket computer of its day. Pity the software didn't keep up.
  8. CalBoy macrumors 604


    May 21, 2007
    The US is all of 10% or less of the total cell phone market. Nokia is the biggest maker of dumb phones and if Windows Mobile ends up being what powers all of those cheap Nokias, it could catapult itself really far really fast.

    Of course if Windows Mobile stays on just smart phones, it's pretty much toast. There's no way Windows Mobile can compete with iOS and Android. That race is over for now and there's two titans surrounded by insects.
  9. neiltc13 macrumors 68040


    May 27, 2006
    I don't know why they don't publish the actual numbers, so I had to work them out myself.

    May 2011: 4,454,400
    Feb 2011: 5,351,500

    A decline in the USA. But as usual, this data is complete nonsense. Here's how they come to the numbers:

    So it's not based on sales or on any sort of mobile browsing data, it's just an online survey and it only focuses on a single country.

    If you are going to post these wild claims, please use a better source next time.

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