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Hardware 2.0

Adrian Kingsley-Hughes

Did Windows Phone 7 only sell 40,000 handsets on launch day?

By | November 9, 2010, 3:07pm PST

Summary: Did a $100 million advertising budget only manage to generate 40,000 Windows Phone 7 sales on launch day?

Did a $100 million advertising budget only manage to generate 40,000 Windows Phone 7 sales on launch day?

This according to TheStreet:

Even with a glitzy media intro last month hosted by champion inside-seller and company chief Steve Ballmer, Microsoft, which spent a reported $100 million on the phone’s advertising campaign, sold a mere 40,000 Windows 7 phones Monday, according to a market research source who tracks phone sales.

Time to put that 40,000 figure in perspective. Apple had some 600,000 pre-orders for the iPhone 4, and is selling some 270,000 a day. Google says that some 200,000 Android handsets are being activated daily. Microsoft gave away some 89,000 handsets to employees, a figure not included in the sales estimate.

UPDATE: Actually, the Microsoft deal is with employees is more complex than that - employees will be offered up to $220 towards off contract, or $550 for those on contract and outside their upgrade cycle. Pre-orders start November 8th and delivery won’t be until after November 18th.

Are potential customers playing a wait-and-see game? Did the marketing campaign fail to excite people? Are there too many Windows Phone 7 handsets to choose from? Is it going to take time for people to take Microsoft seriously in the mobile sector?

Personally, I think it’s going to take time. But I also think that there are too many WP7 handset OEMs scrabbling for attention, but again time will thin down this herd, and the real winners and losers are revealed.

Microsoft had better be in this for the long haul …

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

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Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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RE: Did Windows Phone 7 only sell 40,000 handsets on launch day?
jmclion 7th Dec 2010
I am waiting for my carrier to start selling them. In my rural area I don't get service from AT&T wireless, Sprint or T-Mobile. I only get service from Verizon. I am ready for an upgrade and excited about trying out the phone.
I didn't buy a WP7 phone yesterday, although I fully intend to. I'm waiting on two things; the Dell Venue, and the Dell Venue unlocked.
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With such low sales figures, Windows Phone 7 is now in the same position that Kin was.

@roteague - There are bugs with the Dell and some other WP7 handsets, that cannot connect to secure Wi-Fi networks. The HTC models have a pink camera problem (Google it for more info). Also Google for Windows Phone 7 missing features.

If Windows Phone 7 fails like KIN, will those essential updates ever come to fix the missing features?
@gyepera
Nodoby want to hear your crap.
  • Flagged
but, still very UGLY for Microsoft.
@gyepera

People still buy them by the droves. Given 40,000 on opening day is far above where Android started and it is rocking along pretty well, give it time to start catching on.
@gyepera
BS.
Just the initial in the US is slow.
Think XBox....
Then come back after year 1......
@gyepera - I know for a fact that is crap because my neighbor just popped over to show me his new Dell and connected without problems to our WPA2 WiFi.

It's more than likely that the issues some are seeing when trying to connect via WiFi are caused by them trying to connect to a corporate WiFi which is protected with certificates which haven't been installed on their phones.

Microsoft is coming from behind and it'll take a few months before the groundswell gains sufficient momentum to overcome all the negativity and general ignorance about this brand new platform.

Windows Phone is essentially where Windows 7 was when it was following on the heels of all the Vista negativity. Once Copy and Paste is shipped and a few key improvements have shipped, the handsets improved a little, we'll see far greater adoption.
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Just to expand on gyepera's FUD
NonZealot 9th Nov 2010
@gyepera
There are bugs with the Dell and some other WP7 handsets, that cannot connect to secure Wi-Fi networks.

Like any good FUD, there is just enough truth in his statement so that you can't call it an outright lie but for those interested in the real story, here it is:
http://wmpoweruser.com/dell-shipped-engineering-samples-cause-venue-pro-wifi-problems/

According to XDA-Dev poster dacunto Microsoft has admitted at its store that Dell had seen shipped out engineering models. The Microsoft store fixed the issue by swapping the Venue pro for a HTC HD7, without the WIFI problem of course.

So this is not an issue with WP7 nor is it an issue with the Dell Venue Pro in general. No apologies though, this is a stupid, stupid mistake for both Dell and MS to make. Shame on you both. I just figured that you guys deserved the context behind the story instead of just the headline and the blatant attempt to make it seem like this was a design problem with either the OS or the hardware.
@gyepera.. i.e. you can't yet just enter the SSID and creditials.. it needs to be visible to connect to it.. this is likely what people are reporting..

this one of the many things that MS hasn't gotten around to implementing is like copy/paste, mutli-tasking etc..
@gyepera

Very good points. I sure wouldn't take a chance of getting burned like with Kin or Plays for sure.
@DonnieBoy : it's even worse than Kin, considering that they had several OEMs on board, so the actual head count per OEM is worse than Kin.

And also there's the problem that initial sales are based on initial "excitement", which should've been higher considering the excellent press WP7 got. This could worsen as people start fiddling with the phone and start getting the usual point-release bugs (aka what happened with the original iPhone, the iPhone 4 and the HTC G1).

I think MS is in for the long haul, but is the market ready for a 4th competitor. Don't think so...
@gyepera

i think you are wrong. wp7 can connect to secure wifi it just won't locate hidden SSID
@gyepera - You are quite wrong. Why do you spout such disinformation?

I just picked up a WP7 and it is great so far. I've connected to two secured networks with no problems at all. It will not find a hidden SSID, but no security savvy person would call such a network "secure" (it's more like you're kidding yourself).

Anyway, so far the handset is great. I got the Samsung OLED so it is easy to read in bright light and very smooth touch control (similar to iPhone; much better than the Android). I like the navigation/tiles also.

Great GPS/maps, great browsing, and it I've got it sync'd to my Outlook on my desktop.

I've only had it a few days, but so far it is exactly what I was looking for.
@roteague

Yawn.

Since, in Australia, I had to wait two weeks for my Windows phones, due to the warehouses selling out on the first day, I think we'll reserve judgement.

Oh and my HTC Mozart is working perfectly thank you, but please more FUD from people who haven't touched one yet wink
problem for Microsoft. How many different ways can we say "it sucks".
@tonymcs@... I don't know why you say that they're failing to get any attention:

All WP7 devices sold out in Europe within 48 hours.

All HD7s available on launch day in the US have been sold.

None of the ATT stores in a 100 mile radius of us have any Samsung's (as of end of Tuesday Nov 9th).

The Dell is yet to arrive as are the phones on Verizon and Sprint.

Rest assured - WP7 groundswell will continue to rise as word spreads so you'll have plenty to continue to irrationally hate.
@bitcrazed

I don't know why everyone keeps reporting that WP7 phones (stupid name) sold out in Europe.

That's simply not true.

They're still in stock on all carriers and there's no supply shortage at all.

I think it's Microsoft trying to create buzz, but the reality is, WP7 phones are not sold out anywhere.
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@tonymcs@...

When you only make 10 WP7 phones it's easy to sell out....

"None of the ATT stores in a 100 mile radius of us have any Samsung's (as of end of Tuesday Nov 9th)."

That's nice but if you only get 1-10 phones I'd say it's easy to sell out. And you can still get them online.

Face it, WP7 is DOA.
@tonymcs@... i just bought an omnia 7 samsung, and i have to say, the phone is absolutely gorgeous. The galaxy S, also a nice-ish phone, just does't compete on polish, and the iphone 4 pales next to it (from a usability / screen / touch / 'wow' when the phone was turned on point of view. This is coming from my iphone 4 weilding partner).

My problem - it took 3 days to get it due to low stock availability. Optus = 2 week wait - had to cncel my order and get one from the two optus stores (in all of melbourne), that had stock.

I'm miffed with the vendors - not microsoft, for underestimating demand in such a big way. 40,000 handsets? I wonder how many they would have sold if the bloody carriers / vendors got their act together.
@Donniechild/frothy2 - what version of WP7 to you own to make that asinine statement with? Just curious, yeah that's what I thought. From what I have seen here at work Android sucks and has a lot of issues, but I don't own one so I'm won't say that...and since it's on our list of approved phones (iPhone, BB, Andriod) and desktop services supports installs, let's see 3 of 1800 phones. Yeah it's a hit! But again I don't own one.
@roteague: do you think these money really proportionate to anything?
@denisrs - Precisely. Unlike some, MS won't be blowing its load prematurely. They know they've got a lot of work to do, a lot of hearts and minds to change, a lot of credibility to build. They're in this for the long-haul.

That's what Microsoft excel at: long-term plays.
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That's what Microsoft excel at: long-term plays.
theo_durcan Updated - 10th Nov 2010
@bitcrazed
Translation:
Dont worry if it sucks, next version we wil fix it
@denisrs - every piece of software and most hardware devices have a long list of things that need to be improved in v.next when a brand new version is released.

This is true of Apple's iPhone (be nice if the antenna issues and cracking glass issues were fixed), Android (HOW are they going to deal with the market fragmentation and the length of time it takes carriers to publish new releases), etc.

WinPhone is no different - this is just v1.0. It's a VERY strong v1.0 and there's stuff that needs to be worked one - copy&paste, multi-tasking (without killing the perf and battery), improved UI customizability without breaking cross-phone consistency, tethering, etc.

But with MS in this for the long-haul and investing HUGE resources behind this thing, improvments are already on the way.
Are these phones really good or the hype is just the result of the $100 Million add budget?
@pascalrobert2007 - go find a local store and try them out for yourself. The innards are all very similar (similar CPU, etc.), but they vary in screens (Samsung's AMOLED screens are just jaw-droppingly gorgeous), memory capacity (some can be upgraded with microSD cards) and physical hardware (cases, buttons, etc).

You can read as many reviews as you like, but the best way to find out if it works for you is to go spend a little time playing with one to find out.
Why buy an iPhone wannabe? Nothing I've read inspires a must have urge. No copy and paste, tiles? Please, this thing is dead on arrival. It looks like it was built with bear skins and stone knives. I pity the poor MS employees who were forced to except and use this piece of crap. 1000 apps compared to 300,000 apps available for iPhone. If Ballmer is still heading Microsoft after the failure of this device, then they deserve to crumble as a company. You'd think with all their resources of talent and money, they could have done much better. This is what happens when you leave a sales bozo like Ballmer to run a company. No vision, no innovation, no design sense, and not a clue. What a total complete waste of money and talent.
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Use your brain if it works
Johnny Vegas Updated - 9th Nov 2010
Where do you see anything about anyone being forced to accept anything? Everything I've read says that's completely made up BS. And where'd you pull the 1000 number from? Certainly not the WP appstore. And how many did iphone have at launch? Oh yeah zero. And what about android? Oh yeah about 35. And have you seen the apps? AP? Netflix? on and on. Everyone one of them looks 1000x nicer than the android verisons and runs 3x -4x better. Right out of the gate it already show android for what a pos it is by comparison
This is a huge failure. Maybe they can recover in time, but, this is a HUGE problem.
@Donnie - no, this is not a failure. Nowhere near.

They couldn't sell many more handsets because they've already sold most that were physically available to sell.

As I say above, MS are coming from behind, they've got a lot to do to get word out about WP7, a lot of credibility to build, but they're in this for the long-run.

WP7 is a dream to develop for and is enormously capable, reliable, astonishingly quick and the marketplace app publication process is simple and well documented (unlike Apple's).

It'll take a little time, but WinPhone will become a major mobile & cellphone OS.
@Johnny Vegas

After spending $100 million on ads, MS sells 40K units. Apple spent minimum dollars on advertising in 2007 and there were half mile lineups. Good luck MS and good riddance...
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@Johnny Vegas - Boy, you Windows fanbois and Microsoft must be sooo desperate that y'all are willing to flat out lie in order to get even a single sale! iPhone is eating Microsoft's breakfast, lunch and dinner!
@gtdworak Sure beats the glorified app launcher iphone
first day. I do not think many share you opinions . . . .
@Donnie - iPhone has been on the market for a couple of years and Apple has done a stellar job driving its promotion. However, they had little competition until Android and WinPhone turned up to the party.

Now the game is afoot, let's see where things stand in a year shall we?
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@razzledazzle Dude, troll elsewhere - you are like an mirror image DonnieBoy.
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bitcrazed you wrote
theo_durcan 10th Nov 2010
"iPhone has been on the market for a couple of years ... However, they had little competition until Android and WinPhone turned up to the party"
Wrong: when they launch they had WM6 competition (among others), and all MS fanboys (almost sure you were among them) dismissed Iphone (See Ballmer comments then) while praising WM6 virtues
@theo_durcan - as I said - when iPhone arrived, it had little competition. No other phone was primarily finger-touch based, no other phone offered an integrated App Store, etc. That's why Apple managed to carve such a huge chunk out of the (primarily US) market so quickly - nobody was prepared for the shift Apple introduced.

I was one that said "holy cow ... the game has just changed".

Let me make this clear - Apple have done an awesome job with iPhone, but they've had the market largely to themselves for the last few years.

This is no longer the case now though with both Android offering an similar alternative and WinPhone offering a whole new phone experience. Now they have real competition.
@bitcrazed While I agree that Apple had the upper hand when it originally introduced the iPhone but that was a long time ago in the smartphone world and though it was different than the other offerings there was competition including from MS. Your right, no other smartphone maker had an integrated app store including Apple. If indeed only 40K WP7 phones sold on the first day that is a depressingly low number compared to the competition. Does it mean WP7 is a failure and will die soon, no but it is a very low number considering what a large player MS used to be in this market.
@gtdworak
Go troll somewhere else.
@gtdworak

When Android launched it had 35 apps and no one lined up.
Last time I check it's selling pretty well.

WP7 had close to 2000 at launch.
It shows that developers have a lot interest in it.

300K apps, 290Ks are varieties of fart apps though.
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@herry.k Are you THAT much of a retard or just too damned lazy to do your own research and just toe the Apple Hater party line and regurgitate their overblown FUD?

Out of 300,000 app there are at most 100 fart apps? And how many fart apps are available for the Android platform? Blackberry? Hell there probably a few already on WP7!

Fart apps - the last defense of an Apple Hating FUD spreading ignorant troll.
@herry.k There were 70,000 G1s sold when Android launched and 600,000 in the first three months.

And that was in 2008! With one phone, on one carrier.

If the 40,000 number is true, Microsoft should be embarrassed.
@herry.k
"WP7 had close to 2000 at launch.
It shows that developers have a lot interest in it."


I could be wrong but didn't I read a while back that MS was paying developers to create apps? If that's the case it's hard to put much weight on the number of apps at launch time.
@gtdworak - a few points:
1) Use it for a day and then get back to me - your armchair analysis on its usability is irrelevant at this point.
2) No MS employee is forced to buy one - they can buy whichever handset they like from whichever carrier they want and get their purchase reimbursed if they wish.
3) How many apps did iPhone or Android have on launch day? FAR fewer than WP7. The fact is that the millions of developers who already code in .NET can write apps for WP7 without having to learn new tools, languages or major new skills. There's already HUGE growth in the number of developers actively writing apps for WP7. You'll see evidence of this as the WP7 marketplace starts to grow quickly.

Let's talk in a year and see where your statements land shall we?

This is day 2 of WP7 being available in the US. I predict that by summer 2011, the marketplace will have well in excess of 100,000 apps and WP7 second-generation handsets will be selling well in the market.
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@bitcrazed
Each Mucrosoft employee was given one and told they were expected to use it. Word has it don't be caught by Ballmer with an iPhone. So yes, your right, MS employees weren't forced, they all just received one and are expected to make it their primary phone. I heard they were given to 85,000 employees.
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@gtdworak MS employees don't get to purchase their phones until next week. They aren't "given" the phones, they have to purchase them and then they will be re-imbursed.
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@bitcrazed - MScrazed, er, I mean bitcrazed...MS employees can NOT purchase an iPhone. El Steveo declared as much over a year ago. Wanna keep your MS job? Don't buy Apple gear. Know THAT's what I call hating!
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RE: Did Windows Phone 7 only sell 40,000 handsets on launch day?
The Danger is Microsoft Updated - 11th Nov 2010
@SundayDriver - Silly driver, purchase with full refund = given! Man, and I thought you MS folks were supposed to be smart!
@The Danger is Microsoft - nervous somewhat? You needed to post your reply TWICE?

FWIW, Microsofties are free to purchase whatever phone they want. I know PLENTY of 'softies who have iPhones, loads who have BlackBerries ... even some that have Windows Mobiles!

Microsoft reimburses 'softies who justifiably need a cellphone to carry out their jobs - a relatively small number of people. Last year, Ballmer said MS would no longer reimburse iPhone purchase costs. But if 'softies want to go buy an iPhone, nobody will stop them.
I am waiting for my carrier to start selling them. In my rural area I don't get service from AT&T wireless, Sprint or T-Mobile. I only get service from Verizon. I am ready for an upgrade and excited about trying out the phone.

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