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Microsoft Unveils New Line of Windows Phones Amid Intensifying Competition

Strategic Insights

— 1 min read

Microsoft Corp is poised to re-enter the mobile market with a new line of phones running its Windows software, as it seeks to regain lost ground in the fast-growing smartphone market. The company, whose share of the global smartphone market has dwindled to 5 percent, is banking on the new phones to propel it back into the market, which many see as the key to the future of computing. The new handsets, available on AT&T's network, have already been shown off in prototype form and feature colorful touch-screens and tiles for easy access to e-mail, the web, music, and other applications.

Key Takeaways:

  • Microsoft's new line of Windows phones will be available on AT&T's network, initially, and will feature colorful touch-screens and tiles for easy access to various applications.
  • The company is hoping to regain its lost ground in the smartphone market, which has been dominated by Apple's iPhone and Google's Android system.
  • According to research firm Gartner, Microsoft has just a 5 percent share of the global smartphone market, compared to 9 percent a year ago.
  • Google's Android system has seen a significant surge in market share, jumping from 2 percent to 17 percent in just a year.
  • The market for multi-feature phones is expected to expand massively, with Gartner predicting almost 270 million smartphones to be sold worldwide this year, up 56 percent from last year.
  • Microsoft has been struggling to find a footing in phones and mobile computing, with its share price falling almost 20 percent so far this year.
  • The company has already yanked its Kin phone aimed at teenagers off the market less than three months after launch, and there are still no signs of an imminent Windows-powered tablet device to counter Apple's hot-selling iPad.

Statistics:

  • Microsoft has a 5 percent share of the global smartphone market (Gartner).
  • Google's Android system has a 17 percent market share (Gartner).
  • The market for multi-feature phones is expected to expand massively, with Gartner predicting almost 270 million smartphones to be sold worldwide this year (Gartner).
  • This represents a 56 percent increase from last year's sales (Gartner).
  • Gartner expects only a 19 percent increase in worldwide PC sales to 368 million units this year (Gartner).

Sources:

  • Research firm Gartner
  • Microsoft Corp.

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