Microsoft Banks on New Nokia Windows Phone to Regain Ground
With Apple and Android going full steam ahead with their new flagship smartphones, Microsoft Corp. is hoping its new Nokia Windows Phones can grab some of the market.
Nokia's launch of new smartphones next week is expected to breathe new life into Microsoft's phone operating system, Mango. Andy Lees, speaking at the Asia D conference hosted by All Things Digital, said Microsoft is very excited to have Nokia as one of the software company's partners in the smartphone industry.
"We're very excited for them to be in the market," Lees said. "They have resources around the world, and that's going to be a huge accelerant for us."
Microsoft has been a distant third to Apple and Google's Android OS with the Windows Phone having only a 2 to 3 percent market share. Google's Android OS has about 50 percent share of the market and Apple having around 15 percent. Microsoft is hoping to change that with high-profile partnerships with several mobile phone manufacturers including Samsung and HTC.
Nokia is also currently facing financial troubles with the Finnish manufacturer reporting operating losses of nearly 23 million euros. Nokia had sold only 15.9 million smartphone units in the third quarter of this year. With its partnership with Microsoft, Nokia is hoping that sales and customer interest will turn around in the fourth quarter of this year especially during the lucrative holiday buying season.
While Microsoft still has a lot of ground to cover if it wants to catch up to market leaders Apple and Android, analysts are cautiously optimistic about the software giant's chances in the smartphone market. One marketing tactic Microsoft should exploit is focusing on emerging markets.
"As the price comes down, emerging markets do become a huge opportunity, but also the existing markets in western Europe and the U.S., because as the price point comes down, more people will get into the smartphone market," Lees told Reuters in an interview.
China has around 900 million mobile phone users and only a fraction of them are smartphone owners. Microsoft and Nokia can capitalize on this untapped market for future expansion.
"We'll be going in for the first time in 2012 and we'll be building unit volume from there," Lees said.
Microsoft will launch Samsung and HTC Mango smartphones in the United States and Europe over the next week or so, with Nokia following in various markets, Lees said.