Why is the Windows Phone OS a Flop?

Microsoft’s Windows Phone OS was hyped up quite a bit, but honestly, it simply hasn’t really been all that popular. It has fantastic reviews and is available on all four of the major U.S. carriers, so what is the problem? According to Gartner, a company that offers global technology research, Microsoft’s phones were only able to haul in 1.5 percent of the market in the third quarter.

Tech analysts have been thrown off guard by the Windows phones. They seem like great phones, but consumers simply don’t seem interested in them. It just does not make sense that reliable, feature-packed phones, produced by a successful, leading company, aren’t selling. Well, Charlie Kindel, an employee at Microsoft for 21 years and the Windows Phone’s chief developer has offered his opinion as to why the phones are not a slam-dunk success.

Kindel posted a blog post that stated that he believed that the phones and the Windows OS have been unsuccessful because he believes that Microsoft has worked to alienate itself from both phone manufacturers and wireless carriers. He feels that with both its required hardware specs and tight upgrade policy, Microsoft is severing relationships by limiting the freedom of both carriers and manufacturers. “This is why, despite being a superior PRODUCT to Android, Windows Phone has not sold as well,” Kindel wrote.

“Google has been wildly successful with Android (at least in terms of units) because Android was built to reduce friction between all sides of the market. It ‘bows down’ to the device manufactures AND the carriers. It enabled device manufactures to do what they do best (build lots of devices). It enabled carriers to do what they do best (market lots of devices). It enabled users tons of choice,” he wrote.

“WP (Windows Phone) raises its middle finger at both the device manufacturers and mobile carriers. WP says ‘here’s the hardware spec you shalt use’ (to the device manufacturers). And it says ‘Here’s how it will be updated’ (to the carriers).”

"Thus both of those sides of the market are reluctant. Especially the carriers, but also the device manufacturers. Remember that end users just do what they are told (by advertising and RSPs [salespeople]). Carriers own the marketing money and spend billions a year," Kindel wrote.

Right now, carriers and manufacturers are still willing to make and sell Windows phones; however, it may be due to the fact that they are afraid of becoming too attached to Google or Apple, not necessarily because they enjoy producing Windows devices.

Some of Kindel’s readers did not share his views and felt that he wasn’t necessarily considering the role of software developers and apps.

"Android and iOS are 'safe' because that's where the apps are. Anything else? Not safe. Every conversation, every ad, and every Techcrunch post, er, Verge post, will remind them of where the apps are," blogger Robert Scoble said.

"I agree with you that the relatively weak app ecosystem in WP7 also plays an important part. I do not believe it is the most important reason," Kindel responded.

Microsoft has been saying recently that it is making a major push with Nokia; however, there have been some very mixed reviews about the Nokia 800 Windows phone in the six countries that is has debuted in so far.

"Analysts said there was nothing particularly wrong with the sleek-looking handsets, other than a software glitch on some models affecting battery life, but consumers were just not biting," a Reuters report said.

Kindel said, “The question in my mind is whether Microsoft’s continued investment in WP and close partnership with device manufacturers such as Nokia will eventually enable a breakthrough here. I know that MS can be very persistent & patient; it’s been so in the past. We will see. In the meantime, Android devices will continue to sell like hotcakes and fragmentation will continue to get worse and worse.”

Sources: cek.log - Windows Phone is Superior; Why Hasn’t it Taken Off? and PCMag - Former Microsoft Exec Scopes Windows Phone's Failure

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Microsoft Sells 1.5 Million Windows 7 Phones

On Tuesday, December 21 Microsoft announced that it has sold more than 1.5 million Windows 7 phones in the first six weeks of sales. Unfortunately, those numbers represent the sale of phones to retail stores and carriers. The sales numbers of devices actually sold to customers are most likely much lower.

"Sales are ramping well as our reputation is growing for offering users a unique experience and are in line with our expectations – especially when compared to other new platform introductions," Achim Berg, corporate vice president of mobile communications at Microsoft, said in a statement. "With a new platform you have to look at a couple of things, first of all customer satisfaction."

This is good to hear because there were very disappointing sales numbers when the phone was first released. The Windows 7 phone was built up by the company but only sold 40,000 devices on their launch day. The phone was available through AT&T and T-Mobile. According to a market research source who tracks phone sales and such, Microsoft spent $100 million on an advertising campaign for the phone. Just to give you a comparison, Apple sold more than 2 million iPhone 4s in just the first two days.

Roger Entner, a Nielsen telecom analyst, said at the time that, "It's early in the game. Not every product surges right out of the starting blocks. The first Android phone was not a big seller at T-Mobile."

He continued saying that the Christmas season would really tell how well the phone would do. "We'll see what happens with Black Friday sales," he said. "They'll probably cut prices like everyone else does. It's the nature of the beast. The only one that doesn't do promotions is Apple."

Entner was right. Microsoft has been much more successful since the slow start. Selling 1.5 million devices in the first six weeks is an accomplishment considering the original sales numbers for the devices. Berg did not discuss the U.S. sales versus international, but he did say, “We know we have tough competition, and this is a completely new product. We're in the race – it's not a sprint but we are certainly gaining momentum and we're in it for the long run.”

Berg continued saying that Microsoft had “realistic” expectations for its Windows 7 phones. “We started fresh with Windows Phone 7, and it's a different kind of phone. Measuring for success is more long term than short term," he said.

He further discussed the Windows Phone Marketplace, which now has 4,000 apps and 18,000 different developers creating apps. "We're comfortable with where we are, and we are here for the long run; Windows Phone 7 is just the beginning," Berg said. Berg said that sales are “in line” with Microsoft’s expectations.

Berg promised that the company is planning on releasing several updates for the Windows 7 phone lineups over the next few months. The lineup was released in October. Five different Windows 7 devices are available in the U.S. from AT&T and T-Mobile including the HTC Surround, the LG Quantum, the Samsung Focus, the HTC HD7, and the Dell Venue Pro. It is expected that Windows 7 phones will be offered at both Sprint and Verizon by next year.

It will be interesting to see if sales really do well over the long haul. Microsoft seems very confident in the idea that their phones will be successful in the long term. It’s definitely no iPhone, but I believe that the Windows 7 phones will do well and that the addition of phones from Verizon and Sprint will cause the sales numbers to most definitely increase.

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