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Windows Phone 7 after two months; impressive sales and Marketplace apps

By | December 21, 2010, 10:00am PST

Summary: Microsoft revealed some sales figures today, but you should also look at the significant growth in the Marketplace to see that Windows Phone 7 shows some real promise in the smartphone market.

While I was on my flight to Alaska, Mary Jo beat me to the punch with the news that more than 1.5 million Windows Phone 7 devices have been sold by the manufacturers since the launch in late October (Europe) and early November (U.S.). While these numbers do not show the total bought by consumers, it still is pretty impressive and much more than what some have predicted. Device sales isn’t the whole story with Windows Phone 7 though as we also see a huge growth in applications with over 4,000 apps now available in the Windows Phone Marketplace.

Device sales

I think it is pretty impressive that over 1.5 million phones have been sold by manufacturers given that there are two carriers with only four phones that were available at launch in the US and five more phones on multiple carriers outside the US. I would be interested in seeing the breakdown between the US and non-US figures as well. In the US, we have three phones on AT&T and AT&T is the carrier that is focused on iPhone sales. It must take some major advertising and education for people to go into a store and buy a Windows Phone 7 device instead of an iPhone 4. I have seen a ton of LG WP7 commercials on TV so maybe good advertising is working.

T-Mobile only has a single device, the HTC HD7 (see my hands-on look), available in stores and with nearly the same form factor as the failed HTC HD2 Windows Mobile 6.5 device it seems like people are pretty hesitant to try this device out. Dell has had some major issues with the Venue Pro and it is just this week arriving in people’s hands after some ordering snafus. You can check out the Pocketnow.com and PhoneArena.com reviews to see this may actually be one of the best Windows Phone 7 devices and people haven’t even had a chance to use it much yet.

We know there will be Sprint and Verizon Windows Phone 7 devices launching in early 2011 and hopefully we see more cool devices announced at CES in a couple of weeks.

Windows Phone Marketplace

As you can see on the Bing visual search page there is something like 3,000 apps for the US market with a reported 4,000+ available worldwide. The iPhone had 0 apps for a year before Apple decided to roll out support for 3rd party applications. The App Store opened on 11 July 2008 with 500 apps. After two months there were 3,000 apps, which is just about where we are with Windows Phone 7 at the moment. Apple hit the 15,000 app mark at six months.

The Android Market launched with the release of Android devices in late 2008 and after a couple of months there were 800 free apps. It wasn’t until 17 February 2009 that priced apps were available. Data I found showed that there were 2,300 total apps in the Android Market after six months. Here we are at nearly two months with Windows Phone 7 and we are already at the 4,000 apps level with many of these much higher quality than what we saw in the early Android Market. Games on Windows Phone 7 are all still much better than what we have for Android and games are the hottest selling application category.

So, in regards to the number of apps, Windows Phone 7 is showing they are very competitive to Apple and Google so far. There are also a reported 18,000 developers working on apps for Windows Phone Marketplace.

Thoughts on Windows Phone 7

I have been showing off my HTC HD7 to a lot of folks and I haven’t met a single one that was not impressed with the responsiveness and fluid user interface. I have a few people at work who are waiting for CDMA versions to launch and I haven’t heard of too many people giving up on Windows Phone 7 once they try it. My T-Mobile SIM flip flops between the HD7 and Nokia N8, with most of its time spent in the HD7. It is not perfect and there is definitely room for improvement, but the top notch email experience, full Exchange support, enjoyable gaming, and fun user interface keep me using it as my daily device.

I think we can all acknowledge that Windows Phone 7 is no KIN.

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Topics

Matthew Miller started using a Pilot 1000 in 1997 and has been writing news, reviews, and opinion pieces ever since.

Disclosure

Matthew Miller

Matthew is a professional naval architect by day and a mobile gadget freak at all other times. He purchases his own devices and then sells them on eBay or Craigslist to buy more. Many other devices are sent for review on a 30-day loaner basis and then returned to the carrier or manufacturer. If any are provided as “long term loaner units” this will be clearly disclosed in his reviews.

Biography

Matthew Miller

Matthew Miller started using a mobile devices in 1997 and has been writing news, reviews, and opinion pieces ever since. He is a co-host with GigaOM's Kevin Tofel on the MobileTechRoundup podcast and an author of three Wiley Companion series books. Matthew started using mobile devices with a US Robotics Pilot 1000 and has owned over 125 different devices running Palm, Linux, Symbian, Newton, BlackBerry, iOS, Android, webOS, Windows Mobile, and Windows Phone operating systems. His current collection includes an HTC Radar 4G, Dell Venue Pro, Apple iPad 2, HTC Flyer, Samsung Galaxy Nexus, Nokia N9, Apple iPhone 4S, MacBook Pro, and many more, along with tons of accessories and classic devices like the Apple Newton MessagePad 2100 and Sony CLIE UX50. Matthew can be found on various discussion forums under the user name of "palmsolo".
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RE: Windows Phone 7 after two months; impressive sales and Marketplace apps
tomlin21-24319035676893835085146735905770 11th Oct
Wonderful ! good information. keep it up.Howdy there. Fabulous occupation. I didn't be expecting this in the Wednesday early early morning. nfl jersey This will be considered a remarkable publish. Many thanks!
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Sounds like a good start
jjworleyeoe 21st Dec 2010
Especially in light of the lack of Verizon availability. With the reported release of two significant updates in the next 60 days, Verizon support, and probably at least 5,000 apps in place in the same time-frame, WP7 appears to be off to a good start.
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It's a disastrous sales figure
gjafg 21st Dec 2010
First, this number is for devices shipped to warehouses, not bought by consumers. It can easily be inflated by Microsoft.

Second, with such a high profile launch, you'd expect many million units.

Third, Microsoft bought 90,000 units for employees. Dell bought 30,000. These were purchased via retail outlets.

Fourth, in the United States, Windows Phone 7 handsets are sold with 2-for-1 give aways. Giving away free handsets will certainly raise the sales numbers, but doesn't indicate true demand (or lack of).

By any measure, Windows Phone 7 has been a disaster.
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This is less than 10% of Googles daily activations.

Windows numbers are surprisingly low. Software wise, 4000 apps in 6 weeks considering how easy it is to program in C# is so low that its not worth the time.

MS should decide to pull the phone out now, before they loose more money in it. So far MS has been striking out in almost every en devour it has set out. They need a change in leadership soon before they sink altogether.
@gyepera
No matter how sucessful WP7 will ever be, you will always give an excuse of why it fails in you mind.
@gyepera Biased much?

WP7 is a brand new platform--one that has been performing about as well as can be expected entering a crowded marketplace dominated by iOS and Android devices.

Reviews are largely positive, most WP7 users seem to be pleased with their experience, and the app marketplace is growing by leaps and bounds (it hit 4,000 around December 14th, and is on track to hit 5,000 by the end of the month).

This was NOT a high-profile launch, except within the technology community; most of my non-tech friends/associates still don't know what WP7 is, but they all know what iPhones are. Ballmer is no Jobs.

Nevertheless, WP7 appears to have legs. It's holding its own, and any objective look at it will reveal that it's likely to grow in popularity.
@gyepera

Thats because you belong to the I-Naive club, and do not realize what else exists beyond apple products. The time will come when all of that changes though...
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Wow!
richdave 22nd Dec 2010
@gyepera

Where did you pull that from?
@gyepera
I love it when anti windows fanboys show so much fear that they need to convince others to follow them. Steve would be proud.

Its no surprise that the app market for phone 7 would be quick to produce quality apps. The .net community is a large group of very skilled developers. This is windows phone 7's biggest advantage over everybody else, the human factor. After tinkering with garbage like objective C (a great programming language if it was 1985...what I have to declare my variable again..but I just did *sign*, whadda ya mean you can't garbage collect), I don't see how programmers will want to develop on something other than more modern stuff like .net and java.
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The Venue Pro only has 256MB of RAM. unlike what Dell is advertising (512MB). I ordered two and verified this to be true. Will be returning them tomorrow... If you own a Venue downlaod the phone info app and check for yourself.
@C#2010
Where did you find that Dell Venue Pro has 256MB RAM?
@day2die
I'm a developer and you can check it thru code. But you can also download the 'Device Info' application from the marketplace and check the DeviceTotalMemory.
@day2die
The Venue Prop reports 225MB of RAM, the focus reports 475MB of RAM.
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Matt, I believe those are units moved into the OEM channel, not consumer.
Dietrich T. Schmitz, ~ Your Linux Advocate 21st Dec 2010
nt
@Dietrich T. Schmitz, Your Linux Advocate

If you read, he stated that: "While these numbers do not show the total bought by consumers"
@Dietrich T. Schmitz, Your Linux Advocate
Do you have anything better to say?
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Like it or not it is a KEY point....
James Quinn 21st Dec 2010
@day2die
Does not matter how many are sold to outlets and such what matters is how many are sold to customers and are in customers hands. It's just that simple.

Pagan jim
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Spot on, reports from retailers is not positive for MS
Richard Flude Updated - 21st Dec 2010
The figure only reflects MS's sales expectations post release and in the holiday season.

They have the retail figures, we should be outraged (but sadly no longer surprised) news outlets aren't punishing them for this attempted spin.

Even with the spin, a little perspective:
"Google claims it?s activating 300,000 Android phones a day, and Apple claims 270,000 iPhones are activated each day."
http://www.wired.com/gadgetlab/2010/12/windows-phone-7-6/

The MS tragedy is becoming comical;-)
@Richard Flude

Microsoft doesn't make phones. They might have the figures, but for sure only the manufacturers have them.

Why would I dump my phone before my 2 year contract is up? It does fine and maybe my next phone will be a xxx, but not until my contract expires.
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One major problem for MS
LiquidLearner 27th Dec 2010
@Richard Flude

A friend of mine went into the local ATT store. She was set on buying the Focus. She'd read the reviews and really liked the e-mail integration from her old WinMo 6.5 phone. She also likes the fact that SharePoint works very well with it.

Once she got to the ATT store she was met with a salesperson who was obviously an iPhone fan. He was doing everything he could to talk her into an iPhone instead for some reason. She held firm and went with the Focus but she had to be barraged by Apple marketing hype.

Android took off when Verizon decided to champion their cause. They built one hell of a market around the Droid brand and it's a huge reason why android is doing so well, even on other carriers. I've heard people refer to the Captivate, a device sold on ATT, call it a Droid Captivate, even though Droid isn't the OS and is trademarked by Verizon.

The iPhone and Android devices each had a carrier championing them, attempting to push them down the throat of each and every customer. That hasn't changed. WP7 doesn't have that. Even when it launches on Sprint and Verizon unless one of those carriers put some serious push into selling the phone it will be hard for it take off.
@Dietrich T. Schmitz, Your Linux Advocate Indeed--but presumably resellers aren't stocking up on large volumes of phones that they don't think they'll be able to sell.
@Dietrich T. Schmitz, Your Linux Advocate - yes, those figures were of licenses issued to OEM handset vendors, and not the sales figures of said vendors themselves.

What MS can tell us, and has not so far, is the number of activations that they are registering - I wonder why?

Having said that, I do think they are off to a promising start and should be a force to be reckoned with given time. All things being equal, they will take back their "lunch" that was "eaten" by the hastily and gracelessly cobbled-together Android OS in Windows' long drawn out absence.
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You have no idea ......
Economister 21st Dec 2010
what that number really means. It could simply be channel stuffing by MS.

Why can MS not report retail sales numbers? Are you really that easily impressed?
@Economister
Because Retail stores for the last 6 months have been VERY VERY lean on inventory thus the retail sales closely match the vendor sales.
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Really?
Economister 21st Dec 2010
@JABBER_WOLF

I guess the inventory would have been VERY lean during months 1 through 4, since the frickin' phone was not even out yet.

Try again.
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how come apple and android fans never
Ron Bergundy 21st Dec 2010
talk about how many android phones have be deactivated?
isn't that important so that we can see if people are ;losing interest in android or iphone?

sure they say they sold this many android or iphones but that DOES include the stuff on the shelves that nobodys buying too.
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I'm an iPhone fan and like the Android platform so
Pete "athynz" Athens 22nd Dec 2010
@cyberspammer2 I'll be more than happy to clear up this issue for you.

how come apple and android fans never
talk about how many android phones have be deactivated?
isn't that important so that we can see if people are ;losing interest in android or iphone?


While I do not know the exact figures for the various Android devices with the iPhones there was a 3% return rate (presuming deactivation) on the iPhone 4 which means that 97% of those who bought the iPhone 4 did NOT deactivate it and by not doing so are (presumably) satisfied with their iPhone 4 (and remember the iPhone 4 sold several million units) - Speaking from personal experience I am very satisfied with my iPhone 4. And those figures are from consumer sales not just units shipped to the carriers - after all the iPhone 4 was sold out for weeks after the initial launch just as it was with iPhone 3G and 3GS...

I would be interested in seeing the same figures for Android - I'm assuming due to the popularity of that platform the numbers are fairly close.

Any other questions I can answer for you?
@Economister
Because Microsoft only license OS, that's why.
How are nine devices, sold in thirty different markets, and moving 1.5 Million during the holiday season, 'impressive'? Sorry Matt, but I disagree.

I'm not slagging on the OS, just Microsoft's execution on their strategy of launching this new OS.

It seems like they really do need that rumored hook-up with Nokia.
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IT IS IMPRESSIVE...
C#2010 21st Dec 2010
because the smart phone market is very different now. You have two major players in apple and andriod already on the market. The fact that WP7 can sell 1.5 million in these conditions should make apple and google worried. It will take time but if you use the device you will see its a great phone experience... one that alot of people will pick up over time.
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WP 7 did NOT sell 1.5M
Economister 21st Dec 2010
@C#2010

The manufacturers SHIPPED 1.5M. Do you know how many are still in the channel somewhere?

Maybe they just managed to ramp production and shipped 1.2M in the last week, still sitting in shipping containers.
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Take it easy
P. Douglas 21st Dec 2010
@Economister,

Take a cold shower, it will help you relax.
@Economister
@Economister
They were SOLD to retail stores. So the retailers must see an interest. Yea we don't know how many consumers have purchased devices. Think what you want it's a great product and it will sell plenty!
@Economister
Two things:
1. You hate Microsoft
2. You want to see the downfall of Microsoft and the developer eco-system and make them go on the streets to beg.
I clearly see your sycophancy for Eric Schmidt and his lies. Get a grip and leave it. If you make more statements on this topic it shows your ignorance and I agree sometimes ignorance is a bliss but not always. Take it easy and move on. It is after all technology and it doesn't worth your health.
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next top the containers of android phones
Ron Bergundy 21st Dec 2010
@Economister. Funny thing is i hear about how many iphone and android activations are each day but how many deactivations are there?
how come everyones so silent on that part? could be for every 300,000 activations there are 300,020 deactivations?
@Economister The manufacturers SHIPPED 1.5M. Do you know how many are still in the channel somewhere?

Nope. Do you?
Facto: Its early to know Windows phone 7 is successful or a failure
Facto: But, there are tendency...and it is NOT Windows phone 7 positive.

Why? bad signs (like Bing):
-Microsoft executive Joe Belfiore was talking enthusiastically about Windows Phone 7 at the D: Dive Into Mobile conference, but, when asked, declined to reveal how sales were doing.(question : why W7, yes and WP7, no?)

-Analysts are assuming that dispute Microsoft pushing hard it is not doing that well(despite of that spent/spending in adverticing-like Bing-)

- We are speaking of devices shipped to warehouses, not bought by consumers.

- Headlines exaggerated by MS'advocates.(excuse Matthew Miller but it wasn't an article it was an adverticing) just like with Bing (Mary Jo) , do you all remember that?

----------------
@ economister: you are 'summmoning' all MS bloggers, are you?
@Economister Then explain why there were reports of WP7 units being sold out at AT&T... I'm genuinely curious to see an explanation of the discrepancy.
@athynz
Because they just didn't have that many.
I bought my Samsung Focus at an ATT store and when I asked the sales guy how they were doing he said they only got ten units in and mine was the third he had sold (after a few weeks). This is a high traffic, fairly affluent are so no issues of lack of exposure or expense.
If you hold the Focus vs, the iPhone in your hand there is a real difference in quality.
I also think people don't understand why you have to make a choice on your phone based on "good" external speakers... the Surround is just a dumb idea and that also serves to turn people off.

The sad fact is that this is pretty transparent spin.
1.5 million units SHIPPED by MANUFACTURERS is not the same as units activated or units sold to consumers. Add to that the sheer number of outlets and this is not so great. WP7 has promise, don't get me wrong, but I just don't think it is going to be a big player.

And no this is not how Apple and Android report sales.
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That's because
LiquidLearner 27th Dec 2010
@Anim8me2

The places that sell WP7 devices already have flagship smartphones that their salesman are trained to "upsell" to. If someone walks in the door to buy a Focus I will bet you money that 95% of the time the salesman will try to get them to go to an iPhone instead. You can bet at most Tmobile stores they'd be pushed towards a G2. And when it's on Verizon and Sprint they'll be pushed towards the Droid or Evo.

Microsoft's biggest problem is they missed the boat on being the flagship smartphone for any carrier. It's sad but it's true. That will be their biggest obstacle to overcome. They should really try to get their phones sold to the salespeople for the carriers, that's where it will make the biggest difference. If the 20 year old working at the ATT store loves his WP7 phone more than his old iPhone then it will have a real shot.
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so not 200,000 and no slow starts
JABBER_WOLF 21st Dec 2010
WOW have the mactards and android trolls had it SO SO WRONG.
Its wonderful to see them reeling in misery at how well MS is doing. Look at all the denial !!

WM7 has had better sales than Android in its first 30 days.
The first iphone only sold 1 million in 70 days in comparison and that was when it was loading its stores and outlets - they werent counting retail sales as well.
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You really need to learn what the word "sell" means.
matthew_maurice Updated - 21st Dec 2010
@JABBER_WOLF There aren't 1.5 million WP7 users out there, the OEMs have only "sold" that many devices to retailers/carriers. MS has chosen to tout a very dodgey number. If sales to end-users (i.e. activations) were anything but awful, MS would have announced that.

Clearly we're not talking about a debacle of Kin proportions, but Windows Phone 7 is clearly not taking the world by storm. That being said, MS says they're committed to the long-haul, and the Xbox shows that they're willing to lose a lot of money for a long time to compete in a sector.

FWIW, Apple's policy has always been to report sold (and booked, for you GAAP fans out there) numbers.
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That's simply NOT true.
matthew_maurice 21st Dec 2010
@CrashPad Apple reports "booked" sales. That is, units they've sold and been paid for, which by definition means "activations." Previously they also reported "Non-GAAP" numbers that reflected additional revenues derived from the subscription model but weren't considered "generally accepted accounting." This was just to accurately reflect how much money iPhones were really generating. GAAP has since been amended to allow booking subscription revenue in the original sales quarter. Google reports, just, activations as well, but those numbers are a bit nebulous. Microsoft can be excused a little since they have some of the same "nebulousness" (i.e. OEMs are doing the actual device "sales"), but the fact that they didn't mention activations at all is very telling.
@matthew_maurice There aren't 1.5 million WP7 users out there, the OEMs have only "sold" that many devices to retailers/carriers.

Since you seem to know how many are where... do tell us how many have been bought by consumers, and where exactly you found those numbers.
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Actually, you've got it backwards.
matthew_maurice 21st Dec 2010
@Badgered I don't know how many WP7 users there are out there, and neither does Mr. Berg (or he's not telling us-but that's another question in itself). I simply know that there aren't because he worked really hard to avoid saying how many there are. My point is that his phrasing wasn't an accident. He didn't say that 1.5 million WP7 handsets were sold to consumers, that there were 1.5 million WP7 activations, that Microsoft sold 1.5 million licenses, or even that 1.5 million devices have shipped to retailers. He only said that "phone manufacturers have sold 1.5 million phones in the first six weeks." If any of the previous things were true, surely he would have said so, they are much more meaningful statistics. The fact that he didn't means that they aren't.

Of course I could be wrong, a MS exec speaking in a MS interview to a MS publication could certainly pick the least impressive metric to be "pleased" about. but something tells me I'm not.
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Exactly right Jabber_wolf
NonZealot 21st Dec 2010
@JABBER_WOLF
The first iphone only sold 1 million in 70 days in comparison and that was when it was loading its stores and outlets - they werent counting retail sales as well.

WP7 is doing twice as well as iPhone did when it first came out and this drives the Apple zealots *cough* matthew *cough* absolutely INSANE!!!! I love it. happy
@NonZealot
At least at this point. Unless you have other information and do please share.

Pagan jim
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First we are told that marketshare (getting units into the hands of users) doesn't count. Only money coming in to the company counts. You Apple zealots tell us this over and over and over again.

Now it turns out that nope, it no longer counts that MS has gotten paid for 1.5M WP7 licenses because suddenly, the only thing that counts is how many units got into the hands of users.

You guys are seriously the biggest iDiots in the world. That's fine, there are plenty of iDiots out there. What astounds me is how willing you are to advertise it.
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RE: Windows Phone 7 after two months; impressive sales and Marketplace apps
tomlin21-24319035676893835085146735905770 11th Oct
Wonderful ! good information. keep it up.Howdy there. Fabulous occupation. I didn't be expecting this in the Wednesday early early morning. nfl jersey This will be considered a remarkable publish. Many thanks!

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