Wednesday, August 29, 2012

Microsoft Corporation (NASDAQ:MSFT) May Not Have the Easy Way Out

Apple Inc.(NASDAQ:AAPL)’s win against Samsung has given birth to speculations in the technology market that Microsoft Corporation(NASDAQ:MSFT) may be able to reap huge benefits due to carriers and phone manufacturers contemplating an alternative mobile operating system, now that Google Inc(NASDAQ:GOOG)’s Android has come under scrutiny. But, the major problem with phones running on Windows Phone operating system is that it has not been able to connect with customers like Android.

Sources have cited that Microsoft’s offering has numerous loopholes in its interface and design that needs to be worked out. Until the number of customers who use Microsoft phones reach a suitable number, it is not possible to build new apps and services for such products. Nokia is not too happy with the sales figures of Windows phones as Microsoft is a regular client.

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The Nokia Lumia 900, which also runs on Windows software, got a huge boost from carrier AT&T in the beginning of the year. But then again, that might have been due to the carrier’s independent wireless dealers scheme to sell the product. Even then, it comprised only 2% of the unit sales of a store belonging to an independent AT&T retailer. The worldwide picture throws up similar figures with Windows phones capturing only 3% of the smartphone market, as reported by International Data Corp.

Microsoft is planning to launch the first smartphone built on its newest Windows Phone software next week, after collaborating with Nokia. The interface will steer away from how it looks on the iPhone and will be presented in the form of interlocking tiles of different sizes. These phones may have only a niche audience among first-time smartphone buyers who just want to surf the Web and check e-mails because the apps are not as developed as they are in Google.

Microsoft is currently trying to impress app developers and expand its database of phone customers. It is going to be exceedingly difficult both ways and only time will tell if their strategies will succeed.

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