Microsoft needs to look beyond Mobile 6.5
Microsoft Corp needs to quickly follow its Windows Mobile 6.5 launch with a more competitive cell phone system or risk losing out to iPhone, BlackBerry and Android in the cutthroat smartphone market.
On October 6, several manufacturers plan to unveil phones running Windows Mobile 6.5, Microsoft’s latest software. It includes touchscreen capabilities, an applications store and the ability to customize certain phone display elements.
But since consumers have seen similar features in rival phones for some time, analysts say Microsoft still lags well behind rivals Apple Inc, Research In Motion, Google Inc and Palm Inc.
“They’re still significantly behind in terms of consumer user experience,” said Current Analysis analyst Avi Greengart. “If they don’t catch up soon they’ll start losing relevance.”
To be sure, Microsoft has a good position and room to grow among corporate customers, as Windows-based phones are a relatively easy and cheap option for technology managers who already use Microsoft’s email and desktop computer software.
But a lack of prominence in the bigger market for mobile consumers could be a serious impediment going forward as consumers are instead drawn to iPhone’s simplicity or Palm’s tight integration of social networks like Facebook.
“The majority of the market is consumer so even if (Microsoft) were to retain just the enterprise that would be missing out on the bulk of the opportunity,” Greengart said.
While research firm iSuppli sees Microsoft tripling cell phone shipments using its system to 67.9 million by 2013, iSuppli analyst Tina Teng sees it losing market share until such a time as it launches a substantially improved system.
“Perhaps the most glaring obstacles faced by Windows Mobile reside in its own shortcomings,” Teng said in a research report. “The Windows Mobile user interface looks poor compared to some of its slicker competitors - particularly Google’s Android and Apple’s iPhone operating system.”
However Teng sees Microsoft launching Windows Mobile 7 next year, with upgrades to the user interface and browser as well as multi-touch controls, making it “much more competitive.”
IDC analyst Ryan Reith sees Microsoft’s global market share rising to 13.6 percent in 2013 from 9.2 percent mostly due to its enterprise business but in the same time period he sees Android’s market share rising to 11 percent from 3 percent.
STAYING COMPETITIVE
Some analysts say Microsoft needs a dramatic strategy shift to stay competitive with rivals such as Google’s Android as phone makers are increasingly favoring that software over Windows Mobile.
While many Microsoft’s phone partners are still building devices based on Windows software, others, such as HTC Corp, are turning to Android for their most high-profile phones. One client, Palm, now favors its own webOS system, while another, Motorola Inc, has reorganized its entire smartphone focus to Android.
One advantage Google has over Microsoft is that its Android software is free, whereas Microsoft charges licensing fees to phone makers that use its software.
Filed under: money by TheDoor