Wednesday, March 9, 2011

Microsoft losing the Mobile World War

One would expect a company of Microsoft's caliber to make a better showing in the mobile OS market, considering its resources and experience. Nevertheless, Microsoft held 8 percent OS market share as of January, down 1.7 percent from October 2010. In comparison, Android gained 7.7 percent, while iOS gained only 0.1 percent, losing its second-place lead in October. RIM and HP/Palm lost for the second report in a row; RIM fell 3.5 percent in October and 5.4 percent in January, while HP/Palm's WebOS fell 1 percent in October and 0.7 in January.

Microsoft's mobile market record is poor, but not because the platform is bad; Microsoft is legendary in the IT world and has more OS experience than any other company does. Nevertheless, it is still smarting from the abject failure of the KIN cell phones, the Windows Mobile 6.5 disaster and the now-failing Windows Phone 7 OS.

Hoping to come back and expand its reach, Microsoft and Nokia announced their partnership, an impossible road for Microsoft since Nokia has almost zero U.S. market share and does even appear on ComScore reports. Even if Microsoft were to dominate Nokia sales, it could only hope to gain in a few areas where Symbian dominates.

No matter how one looks at it, the story is the same: Microsoft is losing the mobile battle. Windows Phone 7 is failing to attract the sales Microsoft originally predicted; in fact Microsoft lied about these predictions to make them sound better. While it's a decent system, it is nowhere near good enough to challenge Android.

Microsoft has one of the most innovative research centers in the world. Microsoft developed a good smartphone OS with Windows Mobile 2003. With so much time and experience on its side, it's hard to justify Microsoft's mistakes, lack of urgency and failed recognition by management of just how important the mobile market place was then.

Microsoft is facing the growing trend of users shifting from desktops to smartphones and tablets for Internet access, but not making the switch to Microsoft devices. The year has yet to play out and things may change, but it is difficult to imagine Microsoft gaining enough to overcome consistent Android gains.

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