Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Microsoft could have rocked mobile in 2011 with the Xphone

By | December 16, 2011, 2:00am PST

Summary: Microsoft created a solid product with Windows Phone 7 but it suffered from one fatal flaw: The burden and baggage of the Windows brand.

Windows Phone 7 is the best product Microsoft has built in a very long time.

Of course, building a great product — it could even be the best product in its category — never guarantees success. Microsoft benefited from that dynamic in the 1980s and 1990s when its operating systems were never the best software on the market but prevailed as the dominant platform in personal computing.

Timing, key partnerships, sales savvy, even geography can play an important role in a product winning a big share of the market. Oh, and one other factor: branding.

I’d argue that the number one factor that has torpedoed Windows Phone 7 is branding.

We talked a lot about this earlier this week in the ZDNet Great Debate that I moderated between Matt Miller andLarry Dignan over the future trajectory of Nokia and Windows Phone 7.

The bottom line is that Windows Phone 7 has been dismal failure in 2011, failing to even take a meager 2% of the smartphone market. Microsoft CEO Steve Ballmer has admitted that Windows Phone 7 sales have been a disappointment and recently changed the leadership of the division.

While Ballmer and the rest of the tech industry have puzzled over why more people aren’t buying Windows Phone 7 devices, the answer is almost too obvious to consider. The biggest thing that’s wrong with Windows Phone 7 is Windows.

One of the reasons people love smartphones and tablets so much is that they aren’t as complicated and confusing as the Windows computers that they’ve been using for years. Other than the small-but-rabid cadre of Windows enthusiasts, most people shudder when they think about having a phone that runs like Windows. The last thing they want is a device that locks up for no apparent reason, gradually gets slower over time, and is constantly getting bogged down by spyware, malware, and crapware.

Of course, Windows Phone 7 doesn’t have any of those desktop Windows problems, but the burden and baggage of the Windows brand has brought the factor of guilt by association. The fact that Microsoft’s earlier mobile attempt — Windows Mobile — was slow and confusing also doesn’t help.

If Microsoft had jettisoned the Windows brand from its mobile product line, the devices could have competed on their own merits and attracted a lot more buyers. After all, the operating system itself is fluid and self-evident. It runs quickly and has a high-quality app ecosystem that is growing by leaps and bounds.

Imagine if Microsoft had followed its Xbox strategy and given the phone its own branding. In fact, Microsoft could have drawn on the popularity of the Xbox and used the name “Xphone” (which would have also playfully mocked Apple’s “iPhone” a bit). The “Xphone” would have been better than “Xbox Phone” because not everyone is a gamer and a phone also needs to be able to do get work done — which Windows Phone 7 does (especially if you already use Microsoft Exchange, Microsoft Office, and Microsoft SharePoint), even though the device is primarily aimed at consumers. The “Xphone” would have been shiny and new, instead of looking like Microsoft trying to squeeze its way back into the market after the failure of Windows Mobile.

The other big problem Windows Phone 7 had was that its big hardware partners, Samsung and HTC, didn’t take it seriously and ended up putting WP7 on their second class Android hardware. That’s why Microsoft had to make the salty $1 billion deal with Nokia to get at least one big phone maker putting Windows Phone 7 on their most innovative hardware designs. However, Samsung, HTC, and Motorola (which passed on Windows Phone 7) certainly sensed that consumers weren’t going to get excited about the Windows brand on a phone. Better branding like “Xphone” could have energized them.

I’m not saying that Microsoft would have leapfrogged Android and iPhone in 2011, but better branding could have turned a solid mobile product into a hotter commodity with phone makers and mobile carriers and grabbed at least 5-10% of the growing smartphone market.

Also, keep in mind that Microsoft will be heavily promoting the Windows brand when it launches its tablet strategy in 2012 with Windows 8. In fact, the success or failure of Windows 8 on tablets will be one of the most important things to watch in the tech industry in 2012. Unfortunately, the fate of Windows Phone 7 in 2011 could be a bad omen for Microsoft. Again, one of the main things people like about tablets is that they aren’t PCs — specifically Windows PCs. It’s hard to imagine many people getting excited about “going back to Windows” on a tablet. But, Xtablet? That might have been a different story.

This was originally published on TechRepublic.

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Jason Hiner is the Editor in Chief of TechRepublic. He writes about the products, people, and ideas that are revolutionizing business with technology.

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Jason Hiner

Jason Hiner is the Editor in Chief of TechRepublic, an online trade publication and peer-to-peer community for IT leaders. He is an award-winning journalist who examines the latest trends and asks the big questions about the technology industry. He previously worked as an IT manager in the health care industry.

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Never again . . .
mwidunn 16th Apr
Win98, XP, Win7, 3 (!) Zunes (original--which broke; a replacement--which broke; a return--which broke), Windows Live OneCare.

When the Zune HD came out, I didn't buy it. I use Win7 because I have to now out of monetary necessity. (Any other home users racking their brains over figuring out the firewall? Or, the whole confusing "library" system? Have you deactivated the still-woeful UAC yet?

My next computer purchase will NOT be a Windows. In fact, the "Windows brand" has become radioactive for me.
"its operating systems were never the best software on the market..."

Really? I beg to differ. Windows have always had largest set of features and the best or one of the top GUIs. Success was not for nothing. Linux and Mac tried their best but Linux could not even capture 2%!
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DOS was never ever the "best"
Bruizer Updated - 16th Dec
@wmac1

And Win95? Please. For example, the Amiga blew DOS out of the water back in 1985.

Yes, MS captured market share but it did it with very poor and mediocre product at best.
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Xpad
Tim Acheson 16th Dec
I agree! I still hope for an XPad. Windows Phone is essentially an XPhone, just with a less cool name.
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@Tim Acheson

MS missed the boat on this One.
@Tim Acheson I agree, too. I really like my HTC 7 PRO Windows Phone 7.5 a hell of a lot better than Android although the games aren't as good as iPhone's but the interface is... They definitely should have put more thought into its name.
WP7's biggest problem, at least here in Canada is that nobody knows the phones exist. No demo units in stores, no advertising in weekly flyers, no announcement of Gen 2 phones. When I show people my phone they're blown away, nobody has ever made reference to issues they have on their desktop as a reason not to get Windows Phone. The hope is that with Nokia's muscle, advertising will start in 2012 and I'll be able to walk into a store and see hardware for WP7, heck there is no reason why the XPhone couldn't exist today, it just happens to run WP.
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@rwalrond

Exactly! MS advertising has been terrible. Stop giving me hokey adds and make the dang thing look cool! "It's a great time to be a Windows family isn't going to cut it, Larry! Hopefully, Nokia will change this. And, MS committed an enormous blunder by not immediately extending the Zune brand to phones three years ago. Doing so would have kept the Kin debacle from happening. Moreover, MS would have released Mango right as Android was starting to take off and would not be so far behind in all sorts of areas: apps, flagship hardware, LTE, etc.
@jjworleyeoe

"MS advertising has been terrible" and why is microsoft the one making ads??? what about Samsung and HTC and LG. look at nokia! they have done what they can to sell their windows phone. yeah people say "Lumia 800 doesn't even have FFC, while titan and samsung focus S does" bla bla. but look the difference, people KNOW and LIKE and WANT Lumia 800! even when it doesn't have FFC and all, people pay attention to that, why? because Nokia CARES about WP7. samsung, htc, and LG no! and then they dont advertise enough or at all. you know, they have their android phones, so they expect faeries to sell the windows phones with no ads.
even right now some people want Lumia 710! and thats because Nokia advertise it.

Microsoft can only advertise the OS, and what if you go to stores and you saw the phone and then people push you to Android or Iphone?... but Nokia makes sure people look at the phone first and then the OS. so its not Microsoft Job to advertise what sells the OS... you know, the PHONES! thats each company job! and Nokia is the one doing it right.
if Nokia is doing it right and by themselves... why in the hell is microsoft the one who has to advertise Samsung and HTC and LG if they didn't do it enough in a year or at all?... just because they dont want to and because they dont care? i reallly dont understand why people like you expect Microsoft to do others job. they aren't Microsoft phones. they are Samsung, HTC, LG, Nokia... with a Microsoft OS. and the only one advertising because they actually care its Nokia.
@Emi Cyberschreiber
You sir, know what you're talking about!
(unlike the author of this article, who is clearly biased and anti-MS.. that's poor journalism)

I think the problem is that MS is a software company, therefore they can't advertise and single out one model. And at the same time, none of their hardware partners are advertising their WP phones!

In that sense, Nokia is the one (and only) true partner.

Also, another reason WP is not selling well is because there are almost no in-store demos or posters, and the sales reps never mention WP. How would people know?!
There was a blog about this, and people were sharing their experiences at carrier and cellphone stores.. it just shows you that this an actual problem!

If you're shopping for a smartphone and you walk into a store, you'll see they have more than a dozen Android phones, (Apple fans will systematically head to the iPhone stand), and somewhere in the dark, a dummy WP phone. How would anyone even consider buying it?


Once again, poor journalism!
@rwalrond I get that a lot, too. NOBODY seems to know what it is but when they see it they are very impressed...
Back Lash Against M/S For Their "Android Extortion" Tactics !! IMHO.
@Macterryh
..and the consumers are aware of that "android extortion tactics" ?, it's purely the lack of marketing me thinks
All Windows Phone hardware is old hat. That's one of it's biggest problems. Are there any dual core Windows Phone handhelds?

I agree the branding is wrong too. I'm not sure an entirely new brand would help either though. That said, Microsoft have been clever by not calling the Xbox, Microsoft Xbox. Most people don't even know it's made by Microsoft. It's Microsoft Office, Microsoft Windows but just Xbox.
@bradavon News flash most people don't know anything about their phones hardware. Windows Phone does not have a dual core phone because it is not required. Windows Phone runs better on its single core hardware then Android or iOS runs on its single or dual core hardware. It is just a better coded OS

The main reasons it has not completely taken off is Store presence. When you have a sales clerk pushing Android/iOS and who still thinks the windows phone is windows mobile 6.# yea you are not going or generate many sales there. Especially when stores do not have demo units or signage.
@AceOfClubs

Amen, couldn't have said it better. Windows Phone is appropriate branding for what is. A mobile version of a computer OS. It is not a small gaming phone.

Calling it XPhone would have had little impact. Their true miss is marketing in the stores, and mostly lame TV marketing (which is getting better now).
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MS' main problem with Windows Phone ...
P. Douglas Updated - 16th Dec
... was its lack of influence over the retail experience. Salespersons simply refused to sell Windows Phones, and the phone presentations in stores, in many cases, were poor. Nokia and MS seems to have addressed this, and that, along with strong marketing, is why Nokia Windows Phones (WPs) are selling well in Europe. It appears to be MS' and Nokia's plan to address this problem everywhere - including the U.S. - and I believe we will see WP's market share increase past 20% in 2012. MS also needed a partner that was all-in on WP. (Nokia had for assurance, among other things, MS' track record of conquering markets that were critical to the company.)

As for using Windows as the brand for its smartphone platform, I think that it was the smart thing to do. Generally, it is better MS grows and improves the Windows brand, because this simplifies and lessens the cost of marketing. This is true, even if MS endures turbulence in the short term because of the history of Windows Mobile. As for the suggestion of Xphone, it appears to me that MS wants to use Xbox as a consumer brand, whereas Windows Phones is supposed to target both the business and consumer markets.
@P. Douglas

Oh how I agree with that Statement. I was Christmas Shopping last week and decided to stop in the Cellular Department at Best Buy to take a look at the HTC Titan as a possible replacement for my iPhone 4. The salesperson was all Android this and iOS that and Windows Sucks. I ended up telling his manager I did not appreciate his unprofessional sales methods and walked away. I had a similar experience at the AT&T Store. I guess that is what you get when you have poorly trained sales staff that sell based on personal bias.
@bobiroc
Staff at Bust Buy is selling way over their heads. My experience at ATT was a little better. Love my P7, hoping the apps grow.
@bobiroc That is exactly why Apple opened its own stores to sell its own products. Do you think MS can't afford a store in NYC and LA to showcase its products? That would have helped too. And I totally agree with WP name - it is not way too dull.
Unfortunately, perception is reality. I can't tell you how many BSOD jokes I've seen made about WP7, obviously from people who haven't used it or are still hanging onto the public perception of MS from years ago. Sorry, I should spell it M$ because apparently they're the only software company that has a business plan to make money. Why can't they just make products out of the goodness of their hearts like Google and Apple?

The thing that bugs me the most is watching football on Sunday and seeing it sponsored by Windows 7? Really? Ooooh...it's an OS and you can make a PowerPoint slide to woo your parents to buy you a dog. Let me run down to Best Buy with my pepper spray cuz this baby's one hot mama.

I don't get why they don't tout their ecosystem. I could totally picture a commercial that had someone starting in their office and ending up at home, all while taking advantage of the productivity of Windows 7, Windows Live, Windows Phone, and Xbox/Kinect during their journey, but I'm not a marketing person so what do I know.
@cjallan417 Apple is already doing this in my country. Starting with the iP4S then it shows how iCloud works.
I was very skeptical about WindowsPhone when it was first coming out and then I had the chance to use it for a little while and I was impressed. WP7 was lacking some features but overall the OS was intuitive and easy to use and set up. WP7.5 made it even better which is why I am seriously considering dumping my iPhone 4 for a nice Windows phone. I find that WP runs smoother on more modest hardware than iOS and Android do on phones with higher performance spec. Unfortunately many people and sales people are hung up on specs and while they can be important they are not everything when it comes to device like a phone. If the OS is optimized like WP7 appears to be it can run just as good and sometimes even better on less performance spec.
The problem is that Microsoft tries to market everything like Windows, for Windows, by Windows. The business world still runs on Windows (for now)... but the tech world & consumers have moved on. I just don't understand why they'd spend so much time & money developing a new platform, and then name it after a relic like Windows. WP7 is a brilliant product (I've owned two & just bought my mom one for Christmas), but I think they would've seen better success by now had they named it something else. I love the name XPhone (or XFone)... but, honestly, just about anything would be better than "Windows Phone 7"...

WP7 deserves to be successful... but it's still a big question mark whether it will be or not.
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X-ox
scH4MMER 16th Dec
I gotta agree. Zune was actually still an exploitable brand, in my opinion... maybe still is. Xphone doesn't work, though... too iPhone derivative and doesn't scale well. If Zune is out, how about an Xrox ("x-rocks") to go with your Xbox?
Hey, I have a WMP7 Phone, and I LOVE IT!!! It's amazing. But this article is right. When I tell people all the stuff my phone can do, they think it sounds amazing. Then I tell them that it's a Windows phone, and they are like, "Oh.... Interesting... I guess..." and aren't interested in it any further.
Wait, wait.
I feel there is nothing in name - as it is always said. If this is then what you say about 'i' in all Apple products. There names are not that creative. In fact consistent naming helps Quality branding.

I feel Microsoft is well placed with names as Windows Phone - for Quality Brand and Mango - Creative Codename

I feel it needs more powerfull marketting. In European countries Windows Phone through Nokia Lumia is a good reach. Now its obvious that non-geek/ enthusiasists and those who do use phone without getting mush involved in its functionality, but just to make calls and check mails who already own phones with other platforms will not be going to quickly switch to new platform. Especially when they already own high end Androids and iPhone which suffice there work needs, provide entertainment.

The distinct feature of WP OS is that it is best designed, had tough design philosophy behind it, best integrated.
But these features will only get exposed when people have enough of hands on the actual device. What best can be done is to have small advertisements that can quickly show the great functionalities that can be done with WP and keep people puzzled about how they can do that with there iPhones and Androids.

The acceptance period is surely going to long or else they have to target feature phone users - that may get tempted to buy best OS and dont feel bad to keep aside there cheap pnones.
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Windows Mobile Failure???
ben.rattigan 20th Dec
I thought it was interesting how you stated that Windows Mobile was a failure. Yes Microsoft failed to update this clunky OS but given its dominance in the smartphone and PDA market pre-iPhone still today used by millions of companies for a range of business applications. Windows Mobile is dead as far as the consumer market goes but it is still going strong for business.
Based on my two months experience with Windows Phone 7 (WP7), I think it is the best mobile OS ever created: WP7 combines elegance, simplicity, speed, stability, and basic functionality in one package. It is way better than Android and iOS5. The only disadvantage of WP7 compared to Android and iOS5 right now is the absence of a Citrix receiver; but when Citrix becomes available to WP& users, WP7 will outshine Android and iOS5 in most, if not all, areas. Since all current iPads and Android tablets are just "big phones", it will be utterly foolish for Microsoft and its OEM partners not to release "big WP7 phones", i.e. WP7 tablets. Since big phone tablets will never match the functionality of PCs or workstations, WP7 tablets will never compete with Win8 tablets. In fact, WP7 tablets will lure users back to Windows, in the same way iPad users (most were Windows fans two years ago) are being hypnotized towards OSX. The fact that the average gadget user will always strive to achieve "platform consistency" (e.g. iPhone-iPad-OSX or WP7-WP7tab-W8tab/pc or Android phones-Android tab-?Android pc) should be taken seriously by any gadget/software manufacturer. I bet Google is working on an OS that will run on full-fledged computers. Just like Tic-Tac-Toe, the one who connects all three points will be the winner.

---------------------------------------

I completely agree with the author and the comments of different people that MS should have marketed their software using a "buzz" alphabet (I can't think of an alphabet that's more catchy than "X"). MS should also target ARM tablets, not only ARM phones and x86 tablets. Thus, to be extremely competitive MS and its partners should release the following:

1. ARM phones --- xPhones (available now as WP7 phones)

2. ARM tablets --- xPads (not available, no plan to release as per MS)

3. x86 tablets --- Windows 8 tablet (the name itself will turn off a lot of people esp in the age of iPads and Android tablets); However, since these tablets will be productivity+consumption mobile devices (a completely new class of mobile devise), they will still attract a lot of people, even those who already have tablets, laptops, and PCs.

4. desktops, laptops, netbooks - a few will still upgrade from win 7 to win 8.

Just my 2 cents
You talk about Windows Phone being kept off the latest hardware, but that hasn't been the case for a while now, and look at what's come out? The Nokia Lumia 800? No front-facing camera, expandable memory, dual-core processor? This a flagship product, not some throwaway cheapo Android, but you can find better hardware on a lot of throwaway cheapo Androids, and get them without a contract! It isn't the carriers, it's Windows... they're not a hardware company, but they're forced to dictate hardware standards and provide all the hardware support at their end. This makes innovation difficult, as Apple makes innovative hardware, and Android is much easier to make support any new hardware. If Google had to support all those hardware standards, they wouldn't keep on the cutting edge of hardware either, so they leave it to manufacturers to modify the code if necessary, and their open source nature gives them access to that code.
I agree with this article. Imagine the iPhone called MacPhone? It's corny. Microsoft could have kept the OS lowkey, still called it Windows Mobile 7 or something. But branded the phone XPhone. The XBox runs off of a modified WinNT kernel. Who cares?

It's been said many times before.... Microsoft needs to retool their ENTIRE marketing department. Take a look at Windows Live Essentials. Pretty good apps (similar to iLife). But not many people 1) know about it or 2) are confused by the name (does it only run in the cloud? do I need to have a Windows Live account?).
-Windows Phone -> XPhone
-Windows Live -> SkyDrive (rebrand ALL of Windows Live to SkyDrive and iron out its WTF shortcomings like Mesh Synced Folders requiring extra click to view... and the boring look and feel of the whole site)
Windows Live Essentials -> Windows Plus Pack(?)

Ubiquity: MS should really aquire QuickOffice. They have gazillions of $ in reserve. They should spend it. They would have an *instant* productivity foothold on ALL devices (QuickOffice is even in the Nook store!). Additionally they should write SkyDrive apps for Mac, iOS and Android. If DropBox can do it why the hell can't Microsoft???
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Xphone
oscardetoy@... 3rd Apr
Unfortunately I have to disagree with this post. Are our memories so short that we've forgotten about d Kin family of mobile fones by Microsoft which flopped badly? They weren't named Windows anything yet they flopped badly. Yeah, a name can affect sales, but marketing is what I'd point to as they reason WP7 isn't doing too well.
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Never again . . .
mwidunn 16th Apr
Win98, XP, Win7, 3 (!) Zunes (original--which broke; a replacement--which broke; a return--which broke), Windows Live OneCare.

When the Zune HD came out, I didn't buy it. I use Win7 because I have to now out of monetary necessity. (Any other home users racking their brains over figuring out the firewall? Or, the whole confusing "library" system? Have you deactivated the still-woeful UAC yet?

My next computer purchase will NOT be a Windows. In fact, the "Windows brand" has become radioactive for me.

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