Microsoft's Last Chance: Windows Phone 7 Set to be Unveiled

Strategic Insights -

Microsoft's determination to catch up with Apple and Google's Android smartphones is evident in its planned release of Windows Phone 7, a software set to be unveiled on October 11. The new operating system, spearheaded by a group of top engineers, is Microsoft's last chance to recover from its loss of market share in the past few years. A mock funeral for Apple's iPhone held by a few hundred Microsoft employees at its Redmond campus last month signifies the company's desperation to reinvigorate itself in the competitive phone market. Key smartphone manufacturers, including Samsung and HTC Corp, are expected to roll out Microsoft-based phones for the holiday season.

Key Takeaways:

  • Microsoft's Windows Phone 7 has the potential to revolutionize the smartphone market, but it must offer more than just an also-ran product to compete with Apple and Google's Android.
  • The new software aims to tie in with the actual Windows platform, but its success depends on vendor support and whether it offers radical new features.
  • Microsoft is fourth in the U.S. market for smartphone operating systems, with a share of less than 12 percent, according to research firm comScore.
  • The company's delayed response to the emergence of tablet devices like Apple's iPad has been a drag on its shares, which are down 20 percent this year.
  • Investors are concerned about Microsoft's positioning in the phone and tablet markets, viewing tablets, in particular, as a major overhang on the stock.
  • The Kin, Microsoft's previous attempt to launch a new phone, was dropped after fewer than three months on the market, raising concerns about the new software's success.
  • Prototypes of the new devices have a touch-screen interface resembling the company's Zune music player and movable 'tiles' that access various phone functions.
  • Launch phones are expected from Samsung, LG, HTC Corp, with AT&T Inc being the initial U.S. network provider.
  • Microsoft and AT&T declined comment on the launch plans, and handset makers did not provide details.

Statistics:

  • Microsoft has a share of less than 12 percent in the fast-growing U.S. market for smartphone operating systems (source: comScore).
  • The company's shares are down 20 percent this year (source: Financial Mirror).
  • Windows Phone 7 is set to be unveiled on October 11.
  • Prototype handsets have a touch-screen interface and movable 'tiles' that access various phone functions.

Sources:

  • Bloomberg (no specific date mentioned)
  • Financial Mirror (no specific date mentioned)
  • comScore (no specific date mentioned)
  • Syndigate.info (no specific date mentioned)
  • Albawaba.com (no specific date mentioned)