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Telecommunications equipment industry

Microsoft Gains Ground in Mobile Software Market with LG Partnership

Strategic Insights

— 2 min read

Microsoft's bid to gain a larger share of the growing mobile software market has received a significant boost with the company's partnership with LG Electronics. The South Korean cellphone maker has agreed to use Microsoft's new mobile operating system, Windows Mobile, on 50 of its phone models. This move is expected to strengthen Microsoft's position in the mobile software market, which is dominated by Symbian and Research In Motion.

The partnership comes at a time when the mobile industry is shifting its focus from hardware to software. Faster third-generation wireless networks have increased consumers' appetite for the mobile Internet and smartphones, which are becoming increasingly sophisticated devices with computing power rivaling that of desktop computers.

Key Takeaways:

  • Microsoft's partnership with LG Electronics gives the company a significant boost in the mobile software market, with 50 of LG's phone models to use Windows Mobile.
  • The partnership highlights Microsoft's efforts to extend the Windows brand to smartphones, the fastest-growing segment of the mobile phone market.
  • The mobile industry is shifting its focus from hardware to software, with consumers increasingly demanding mobile Internet access and smartphone functionality.
  • Microsoft's Windows Mobile 6.5 has a touch-enabled screen and improved interface, but lacks the multitouch feature found on the iPhone.
  • The company is planning to provide Windows Mobile users with a free service that backs up personal information onto Microsoft servers.
  • Manufacturers have agreed to display the Windows Mobile operating system logo prominently on their phone packaging and in advertising promotions.

Statistics:

  • Microsoft had 13.9 percent of the global mobile operating system market at the end of 2008, compared to 52.4 percent for Nokia and 16.5 percent for RIM (Canalys).
  • Windows Mobile 6.5 has a touch-enabled screen that resembles the interface of Microsoft's Zune MP3 player (Microsoft).
  • The mobile Internet market was expected to reach 9.6 percent of mobile operating system market, led by the iPhone (Canalys).
  • Smartphones are expected to increase from 12 percent of mobile phones sold worldwide to 20 percent by 2012 (Andy Lees, Microsoft).

Sources:

  • "LG to use Microsoft operating system on 50 phones" - Microsoft (no date provided)
  • "Microsoft names Android as a rival" - Gartner (no date provided)
  • "Windows Mobile 6.5 To Debut at Mobile World Congress 09" - Microsoft (no date provided)
  • "Microsoft and Nokia to Offer Mobile Application Stores" - Euclid Infotech Pvt. Ltd. (no date provided)
  • "Global smartphone market to reach 20% by 2012" - Andy Lees, Microsoft (no date provided)

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