Microsoft Revamps Phone Software in Bid to Regain Momentum in Crucial Market

Strategic Insights -

Microsoft Corp. is expected to unveil a major overhaul of its phone software, Windows Mobile 7, at the Mobile World Congress in Barcelona, Spain, in an attempt to regain its position in the smartphone market where it has been overshadowed by rivals. The new software is designed to be more consumer-focused, with a simplified user interface, and could be available in phones this year. Microsoft's efforts come as the company faces increasing competition from Research in Motion Ltd., Apple Inc., and Google Inc., which has emerged as a major player with its Android software.

Key Takeaways:

  • Microsoft expects to announce a major revamp of its phone software, Windows Mobile 7, at the Mobile World Congress in Barcelona, Spain.
  • The new software is designed to be more consumer-focused, with a simplified user interface, and could be available in phones this year.
  • Windows phones accounted for 9 percent of smartphones sold worldwide last year, down from 13.2 percent in 2008, according to research firm In-Stat.
  • Microsoft faces increasing competition from Research in Motion Ltd., Apple Inc., and Google Inc., which has emerged as a major player with its Android software.
  • The new Windows Mobile software is expected to be a critical factor in Microsoft's ability to regain its position in the smartphone market.
  • Analysts believe that if Microsoft fails to deliver a successful Windows Mobile 7, the company will struggle to regain its footing in the market.

Statistics:

  • 9 percent: Share of Windows phones in the global smartphone market last year, according to In-Stat.
  • 13.2 percent: Share of Windows phones in the global smartphone market in 2008, according to In-Stat.
  • 9-13.2 percent: Decrease in Windows market share over the past year, indicating Microsoft's struggles to maintain ground in the smartphone market.
  • 2008-2013: Yearly decrease in Windows market share, highlighting the company's declining presence in the smartphone market.

Sources:

  • The Associated Press
  • Peter Svensson
  • In-Stat
  • Dan Hays, PRTM
  • Charles Golvin, Forrester Research