Microsoft Unveils Windows Phone 7, Faces Steep Competition

Strategic Insights -

Microsoft Corp. has unveiled Windows Phone 7, a new mobile operating system designed to compete with rivals Apple Inc. and Google Inc. The software replaces Windows Mobile 6.5 and features a newly designed homescreen and elements from Microsoft's Zune HD music player and Xbox game console. Microsoft is working with device makers such as HTC, Samsung, and Sony Ericsson to release the first phones in the second half of 2010. However, the company faces significant challenges, including a gap in the market between Windows Mobile and the leading systems from Apple, Symbian, and Google.

Key Takeaways:

  • Windows Phone 7 features a newly designed homescreen and integrates elements from Microsoft's Zune HD music player and Xbox game console.
  • The software will be released on phones from device makers such as HTC, Samsung, and Sony Ericsson in the second half of 2010.
  • Microsoft is working with hardware makers Toshiba, Hewlett-Packard, and Dell to develop the new platform.
  • The company has partnered with AT&T and France Telecom's Orange to release the first phones based on the new software.
  • Despite these efforts, Windows Mobile is ranked fourth in the smartphone market, while the three leading systems from Apple, Symbian, and Google are predicted to continue to lead in the coming years.
  • Gartner predicts Windows Mobile could fall to fifth place by 2013.
  • The release of Samsung's proprietary operating system bada in South Korea and its plan to launch the Samsung Wave globally in April 2010 adds competition to the market.
  • Microsoft has a separate mobile project, code named Pink, to design a mobile phone aimed at teenagers, a successor to the T-Mobile Sidekick.

Statistics:

  • Microsoft's Windows Mobile 6.5 is ranked fourth in the smartphone market, with Gartner predicting Windows Mobile may fall to fifth place by 2013.
  • The release of 150 million Windows Mobile devices by 2012 is not mentioned in the text, but the 6.5 version has been used by Samsung, HTC, LG, and Sony Ericsson.
  • According to the report, there are 10 million activations of Windows Mobile 6.5 a month, and Gartner predicts Windows Mobile will eventually drop to fifth place.

Sources:

  • Microsoft Corp.
  • Gartner Inc.
  • Forrester Research
  • The Wall Street Journal
  • Euclid Infotech
  • Contify.com