Nokia and Windows Phone are misfits
Some relationships aren't meant to be. That's how I felt about Microsoft and Nokia when they announced their partnership in February 2011. You've seen some of my missives: "Nokia does the Windows Phone death dance" (April), "Windows Phone can't save Nokia" (February) and "Windows Phone transition is killing Nokia" (July 2011), among others. Let's not forget the memorable "Windows Phone 7 Series is a lost cause", from February 2010.
The problem is simple: Microsoft's usage philosophy around Windows Phone is fundamentally flawed and doesn't jive well at all with Nokia's enormous install base. As such, Nokia should never have cut the deal with Microsoft that replaced Symbian with Windows Phone. Symbian was the most widely used mobile operating system in the world when the companies cut the deal -- and in many geographies where Nokia remains market share leader, it still is. Seventeen months ago, new CEO Stephen Elop should have fretted more about holding onto existing customers -- how to move them to new Nokia handsets -- rather than compete with iPhone. The ex-Microsoft president doomed Nokia, instead.
Why isn't Windows Phone more successful?
As Nokia reports its earnings, I can’t help but feel bad for the company's efforts here in the United States. To me, 600,000 units in North America (and supposedly that includes other devices besides Lumia 900) is not exactly what I would call a win.
But that’s just me. I’m a Windows Phone user. It’s a fantastic platform. The interface is gorgeous, and the OS is fast. I haven’t had issues with Windows Phone that I have had with Android. So in my opinion, the platform deserves a spot at the table with Android and iOS. So why hasn’t it been very successful?
Nokia Q2 2012 by the numbers: Losses lessen, Lumia lights up sales
It’s tough to be in Nokia’s shoes right now, with so many people expecting them to fail. Today, the Finnish phone manufacturer released second-quarter financial results and, despite public expectation, financials aren’t what we might expect. If we're to believe all rumors posted on the Internet the past days about Nokia’s financial state there wouldn’t be a need to read their press release. Reality is different. Phone sales increased quarter on quarter and year on year, with Lumia Windows Phone exceeding predictions.
Let's kick off with the numbers: Nokia’s operating loss amounts to EUR826 million ($1.01 billion). The Finnish manufacturer reduced its operating loss from EUR1.3 billion ($1.6 billion) over the previous quarter, which surpassed predictions of a bigger financial loss. At the end of the quarter they’ve got EUR102 million ($125.5 million) in net cash, far better than the EUR590 million ($724 million) deficit of last quarter. Nokia posted net sales amounting to EUR7.5 billion ($9.2 billion), up EUR0.1 billion ($122 million) from the previous quarter.
I don't know whether to cheer or cry for Microsoft
From one perspective, 2012 looks like a great year for Windows Phone, with about 17 percent year-over-year growth in the United States. Outstanding! But, uh-oh, that's from a tiny base. Get out your magnifying glass -- share will rise from 3.5 percent to 4.1 percent, according to Strategy Analytics. Ah, yeah.
The analyst firm's forecast is for actual number of smartphones sold, not shipped -- 123 million, 5 million of which will have Windows Phone. That's up from 101.8 million and 3.5 million, respectively, in 2011.
Nokia Lumia 900 is twice as nice for half the price
In a very bold move, AT&T slashed the price of the Nokia Lumia 900 in half. That means that if you’re into discounts, the flagship Windows Phone device is the right device for you today. With a two-year contract, Lumia 900, currently one of the best WP 7.5 offerings, is available for just $49.99. The price cut makes Lumia 900 considerably more attractive compared with fellow Windows Phones.
But there's a hidden price to pay, and it's not about money. Let’s assume you’re interested in getting the Lumia 900. So what’s the future hold for your new shiny piece of tech? Microsoft announced that current Windows Phone 7.5 devices will get some features of Windows Phone 8, but not all of them so to make it sound like a big improvement over its predecessor they’ve named the new operating system Windows Phone 7.8. That’s a great marketing strategy to throw current owners and buyers a bone, a slight taste of what’s to come, but to also force them into getting a new device if they want the full blown experience that Microsoft has in mind.
The 808 PureView accentuates Nokia's downfall
How would you like to spend $700 on the most amazing smartphone, one which truly replaces your digital camera and makes iPhone look like horse and buggy compared to your Porsche. The handset has style and finesse, and is teched-out to the nines. There is but one little problem: The software is outdated -- abandoned -- before the phone's release. The hardware is amazing but the operating system is dead on arrival.
Nokia 808 PureView is the latest smartphone to come to the United States from the Finnish manufacturer. Nokia's USA website lists the 808 PureView as "coming soon", but Amazon will sell you one right now, for $699.99. There the lone reviewer, Tor Slettnes, rates five stars, writing: "This phone is nothing short of a dream come true for any remaining Symbian fans -- all 3 of us!" There you have it. Everything that's right about the mobile shows what's wrong with Nokia.
It's a gargantuan war among industry titans and the winners will control everything for years to come
Damn, what an extraordinary month.
Let’s recap. First, we saw a spate of exciting new Ultrabook announcements, along with some x86- and ARM-based Windows 8 tablets at Computex. Then Apple introduced new spins of iOS and OS X for tablets and PCs, respectively, at its developer gathering. Microsoft unveiled Windows Phone 8 at the Windows Phone Summit -- and let's not forget the Surface tablet. And this week, Google rolled out new products and concepts buckshot-style at Google I/O, showcasing its first branded tablet, the Nexus 7, and Android 4.1, just to name a few.
Microsoft's road to redemption
Microsoft just put behind it an eventful and positive week, coming off two major announcements on its two major computing platforms -- Windows and Windows Phone: Surface and WP8. Consumer and expert scepticism hobbled much of the excitement, as Microsoft nose dives into paradigm change. Nevertheless, the third week of June 2012 is indicative of a profoundly new direction for Microsoft, characterized by refreshing perspectives and paves a path that leads ultimately in the right direction.
Microsoft is making genuine inroads towards a new strategy that represents a complete paradigm shift from the fundamentals that defined the company and its products over the last couple of decades. The company used to be the antithesis of Apple in practically every sense, selling products based on the abundance of choice as opposed to Apple's strategy of marketing a small hardware lineup. Apple's strategy has always focused on ease of use, simplicity and form; whereas Microsoft, although not neglecting form and aesthetic, put functionality first and foremost and wrapped design around this in the most appealing way possible. The announcements this week represent a fully-committed digression from this strategy from Microsoft.
How does Windows Phone 8 affect you?
Something at Microsoft has changed, and it's rather startling. The company so long risk-adverse takes some really big ones -- with Windows 8, Windows Phone 8 and Surface tablets high among them. Windows 8 radically changes the user interface, which already irks some long-time customers, particularly in businesses. Windows Phone 8 is incompatible with every WP handset ever sold, even two-and-a-half-month old HTC Titan II or Nokia Lumia 900. Surface competes with OEM partners, and some already complain Microsoft blind-sided them. This isn't your father's Microsoft, or elder sibling's.
For years, Microsoft sought to preserve the status quo, and still does. But no longer is CEO Steve Ballmer and his top guns willing to stand still while the market moves forward. IBM chose status quo during the computing-era transition from mainframe to PC -- cater to existing customers and preserve existing revenue streams. For years, Microsoft followed similar course during the early transition from the PC to the cloud-connected device era. No longer. Microsoft takes big risks to preserve its computing relevance, and they'll either sink the company or preserve its place in the new world order. The question: How does it all affect you?
Windows Phone 8 won't be available on anything out today, but that's okay, right?
Microsoft revealed its plans for the next generation of Windows Phone on Wednesday, which includes broadening hardware support, revising the user interface, and adding a couple of new features that bring Windows Phone up to speed with the Android platform.
Unfortunately, though, no current Windows Phone devices will receive an upgrade to the new operating system. Instead, they will receive the graphical overhaul of the new Start screen in a sub-update called "Windows Phone 7.8."
8 big features of Windows Phone 8
At the Windows Phone Summit in San Francisco today, Microsoft provided the first look at its upcoming update to the Windows Phone mobile operating system, Windows Phone 8.
Microsoft has unveiled just a few of the banner features that will be included in the next versions of Windows Phone 8. Conveniently, there are eight major parts of the company's announcement today.
Microsoft's Windows Phone Summit Liveblog: Introducing Windows Phone 8
Microsoft sure is busy this week! Join BetaNews starting at 12 pm EDT for our liveblog of the Windows Phone Developer Summit in San Francisco. We're expecting the debut here of Windows Phone 8, the next version of Microsoft's mobile operating system.
Windows Phone 8 is expected to have a host of new features, including Near Field Communications, support for multicore processors, new screen resolution support, improved Skype application (although still seperate), and the replacement of the Zune PC client with something that's closer to ActiveSync, Mary Jo Foley reports.
Nokia stock collapses after announcing massive layoffs
It is a dark day for the employees of the world's most-recognized phone maker in Espoo, Finland. Stephen Elop, Nokia CEO, announced today that 10,000 positions will be made redundant by the end of 2013. In what is being called part of a strategy to rescale Nokia's operations after terrible losses over the past four quarters, offices in Finland, Germany and Canada will close. Also executives Niklas Savander, Mary McDowell, and Jerri DeVard will step down.
The market reacted swiftly and painfully, driving down Nokia's share price about 18 percent to $2.30. In early trading, Nokia shares dropped their greatest percentage in 11 years.
If Windows Phone is No. 2 by 2016, I'll clean Steve Ballmer's toilet
In March of last year, I boasted: "If Windows phone is No. 2 by 2015, I'll kiss Steve Ballmer's feet". Looks like Microsoft's CEO and I get a year's reprieve. Once again, IDC makes ridiculous, bold claims about how Windows Phone will ascend to second place in market share, now in 2016. Oh, pleeease forgive my skepticism considering how Windows Phone share has done nothing but fall like a rock -- 1.9 percent sales share in Q1, according to Gartner.
It's a year later in the forecast, so I'm making a new pledge. Since my prediction and ego would be in the toilet, I'll clean Ballmer's if Windows Phone rises like IDC predicts. It's a pledge I never expect to fulfill, so it's easy to make. Besides, in this newer forecast, IDC places an escape clause, suggesting waning confidence Nokia can lift Windows Phone so high.
Windows Phone reaches for the bottom
Sometimes, BetaNews readers really amaze me. Three days ago I posted "The measure of Windows Phone failure is..." based on comScore US smartphone OS market share data. To me, it was a trivial story, because I was days late writing about the numbers and posted it more as filler, being short writers (because of holidays and emergencies). More than 220 comments later, Windows Phone is hot-topic of debate among you.
Yesterday, Gartner released first-quarter global phone sales data that puts to end any real debate about Windows Phone's present: Combined smartphone OS share with Windows Mobile was 1.9 percent, down from 2.6 a year earlier but flat sequentially. The quarter-on-quarter data suggests, in context of Nokia Lumia launches, that Microsoft's mobile operating systems have finally hit bottom -- that perhaps the things won't get much worse and could finally improve.
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