Can Microsoft Right the Windows Phone 7 Ship?

By | January 14, 2011, 12:33pm PST

Summary: Microsoft’s young smartphone platform is definitely in trouble. In spite of a splashy ad campaign to spur the Windows Phone 7 launch, rumors of poor sales won’t go away. Can Microsoft right this ship?

Microsoft’s young smartphone platform is definitely in trouble. In spite of a splashy ad campaign to spur the Windows Phone 7 launch, rumors of poor sales won’t go away. It doesn’t help matters that a big hardware partner of WP7 publicly admits that sales of the company’s phones have been disappointing. Can Microsoft right this ship?

The press started suspecting something wasn’t right with Windows Phone 7 sales when Microsoft sidestepped the issue of sales numbers at the CES. Now one of Microsoft’s largest hardware partners with the platform, LG, has admitted the company’s disappointment with the push of WP7 into the market. That’s about as bad as it gets for a platform builder like Microsoft.

LG’s marketing strategy and planning team directory, James Choi, doesn’t seem clear on what the problem is with WP7 adoption. ““For tech guys like us it might be a little bit boring after a week or two, but there are certain segments that it really appeals to. We strongly feel that it has a strong potential even though the first push wasn’t what everyone expected”.

Choi’s statements show how difficult the task ahead is for Microsoft and it’s hardware partners. WP7 is the flashiest mobile system Microsoft has ever produced, and yet it’s perceived as boring by hardware partners.

Even though typical of smartphones today, Microsoft’s hardware requirements for WP7 are apparently seen by LG as raising the bar too high for the market. “There is a lot of scepticism at the moment, but once Windows Phone 7 handsets that are mid-tier to low tier start appearing the market share will grow. Right now it’s only exclusively present in a high tier, because of its hardware requirements, and that’s limiting growth”.

It seems that LG believes the future success of Windows Phone 7 lies in the bargain bin. That’s not promising for a brand new platform, even one as pretty as WP7.

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Topics

James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long.

Disclosure

James Kendrick

James Kendrick has no affiliations or relationships that need to be disclosed.

Biography

James Kendrick

James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long. Prior to joining ZDNet, James was the Founding Editor of jkOnTheRun, a CNET Top 100 Tech Blog that was acquired by GigaOM in 2008 and is now part of that prestigious tech network. James' writing has appeared in many print publications: Smartphone and Pocket PC Magazine, Information Week and Laptop Magazine to name a few. James' coverage of the mobile technology sector has regularly appeared in the New York Times, Salon.com and CNN/ Fortune online. Not just a writer, James has filmed numerous video reviews and how-tos that have garnered well over a million viewers. He has appeared on local news segments and been interviewed by the Associated Press on mobile technology topics. Additionally, James has been podcasting about mobile technology for years.

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RE: Can Microsoft Right the Windows Phone 7 Ship?
JACOBSONR 14th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.
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LG's sales arent't that good, because LG's Windows 7 Phones aren't that good.
are selling well, and how many they have sold, PLEASE LET US KNOW.
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look at you jump around
FADS_z 14th Jan 2011
@DonnieBoy

Do you have a job?
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@DonnieBoy

I was going to buy one today. Been holding off for a while trying to see if WP7 would start getting traction. I decided at $99 for a good smart phone I would go ahead and do it. Then I started looking at reviews on amazon. When I went through their sales wizard to see how much they are it was ONE CENT. Amazon is selling the AT&T phones for a penny with activation. With prices dropping on them everywhere and amazon at only a penny I have no confidence in the platform. Too cheap too soon. Giving these away as a free with contract phone just ran me off.
If so, we are all ears.
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Android Is Doing Well Because of Multi Tier Phones
kyron.gustafson@... 16th Jan 2011
@DonnieBoy ... Kendrick failed to provide the reason Windows 7 phones have not been selling. According to LG's Choi

"There is a lot of skepticism at the moment, but once Windows Phone 7 handsets that are mid-tier to low tier start appearing the market share will grow," he said. "Right now it's only exclusively present in a high tier, because of its hardware requirements, and that's limiting growth."

By the way have you even tried a Windows Phone 7?
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@roteague - A year ago I was told by a WP7 executive to wait for this phone because it would rock. Bought it at T-mobile and returned it about 24 hours later. For us non-exchange-server users this phone was a joke...some smart person at MFST said DELETE to active sync and the outlook sync via windows-live is a total joke. I would have loved the "windows based" aps on my money but they forced me to android because it actually has a good sync to outlook via Google-mail... can you believe that MFST would allow this to happen??? Someone should lose a job. Really Sad
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@george0227 - it's pretty evident that you've not (despite your claims) ever used a WinPhone.

WP7 *does* sync with Exchange via AtiveSync and DOES sync with HotMail/LiveMail without any issues. What, precisely, are your issues with how WP7 sync's email?

As to the rest of your text ... little of it makes any sense:
" I would have loved the "windows based" aps on my money but they forced me to android because it actually has a good sync to outlook via Google-mail"

Huh?
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Erm...
zkiwi Updated - 14th Jan 2011
@george0227
He said he was a non-exchange-server user
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RE: Can Microsoft Right the Windows Phone 7 Ship?
marvin@... Updated - 15th Jan 2011
@george0227 I to am returning my new WIN 7 phone on Monday after spending 3 hours with AT&T support trying to get my PC "personal" outlook to sync with the phone. If you do not mind risking your personal contacts and calendars on Microsoft servers or someone else Exchange Server, then this is the phone for you since that is the only way it works. I also ask "What was Microsoft thinking"? Are they just trying to steal everyones information? Bitcrazed. Do you work for Msoft?
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@george0227 I dont belive a word you say.

First off, the Hotmail plugin for Outlook works way better than the gmail plugin. The gmail plugin does not work on a free account, only a paid Google Apps account, which is $50 a year.

With a free GMAIL account you only get Outlook syncing via a IMAP and that is only email, not contacts, cal etc.

With the hotmail plugin for outlook you get full Active Sync with hotmail, email, contacts, cal.....all for FREE.

Just today I finally ditched my iPhone 3G, that was running like effing krap with the iOS 4.x OS. I went to an ATT store and got a Samsung Focus. I continued my unlimited plan. The focus popped up after the first boot and asked for my live account and after I put in the information email and contacts started flowing down to the phone in 15 seconds.

Next I plugged in my work Exchange information and it too flowed down in 15 seconds.

Since GMAIL uses Microsoft Active Sync on its servers I could have setup a GMAIL account on the phone, if I wanted my privacy invaded, and it would have worked as well.

So I dont belive what you are saying. Any user buying a smartphone and wanting to sync their data has 4 choices, an Exchange account, a hotmail account, a gmail account or in the case of an iPhone you can use MobileMe (what a joke).

Yahoo, AOL and who knows what else, may support IMAP but that is ONLY for email, no contacts or cal.

@marvin risking your contacts and other info on Microsoft servers?? Yeah because you losing your hard drive is never going to happen vs losing data on Microsoft servers in a data center???

I have email in my hotmail account that is 10 years old.

The BS in all of this is the bloggers. The effing phone is just over 60 days old and these idiots post doom and gloom blogs. Yet WP7 has sold more than Adroid and iPhone in the same time frame and has more apps in its app store in the same time frame. This blog post is pure link bait, filled with haters and in the case of george0227...liars...or people that cant figure out how to setup a email on a phone.
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RE: Can Microsoft Right the Windows Phone 7 Ship?
illegaloperation 14th Jan 2011
@roteague
No, LG phone suck either way.

Here's a breakdown of Windows Phone 7 OEM distribution:
HTC: 51%
Samsung 37%
LG: 9%
Dell: 3%
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Those numbers came from where?
matthew_maurice 15th Jan 2011
@day2die I'd very much like to see the unit numbers of that list.
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Are any LG products good?
kyron.gustafson@... 16th Jan 2011
@roteague ... I've had problems with just about every LG product I've bought. So I steer away from buying LG products.

Still in all I think Kendrick has skewed LG's response. LG's Choi also said:

"We strongly feel that it has a strong potential even though the first push wasn't what everyone expected."

and he said that Microsoft's OS is

"absolutely perfect for a huge segment out there. What we feel is that some people believe that some operating systems, mainly Google, are extremely complicated for them."

To which I say "Amen!"
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I am not buying any of this guys, it's way too early in the game to be ringing the "bring out your dead, bring out your dead" bell.
I have had my WP7 since day 1 and I am happier with this phone than any other phone I have had prior: iPhone, Android, Nokia...I have had many.
There is so much hype in the smartphone market at the moment and so many lemmings out there that have had a LaJobamy that it not going to happen overnight for Microsoft and I think they are well aware of that.
Let's all just sit back for a while and play with our toys and let the chips fall where they may.
BondiGeek
http://www.bondigeek.com
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@BondiGeek I totally agree. I'm ditching my Blackberry Torch for a Samsung Focus next week when my upgrade is due. I've been loyal to RIM for years but OS 6 is an EPIC FAIL. I have an iPad but am unable to use an iPhone as a business tool. I spent hours playing with Android and WP7...WP7 wins hands down. I think alot of the general population issues will resolve themselves with future updates and this OS will gain popularity. In my eyes, if you have a corporate exchange and are active on social networks. This is THE phone to have. XBox live is a huge bonus (for me).
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@Exsanguinate - I totally agree too - I am thoroughly enjoying WP7 with my Focus.

Great Exchange support (and getting better still in the future). Smooth Sharepoint integration. SERIOUSLY AWESOMEZune music subscription. Sweet games & XBox Live integration.

Copy & Paste and perf improvements imminent. Marketplace apps and games volume exploding.

It's early days for WP7 - MS is in this for the long haul. It'll take a while to get momentum, but it will come.
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RE: Can Microsoft Right the Windows Phone 7 Ship?
illegaloperation 14th Jan 2011
@Exsanguinate
I have the Samsung Focus and has few issues, most of which is related to accidentally touching the capacitive buttons (I prefer physical buttons), but overall, I am very sastified with this phone.
Top it of that Google has unlimited resources to throw at Android, and much better focus, PLUS the iPhone, and I don't see WP 7 going anywhere.
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being clunsy and boring, yet the users here with WP7 contridict you in refernce to WP7

Who should we believe? You, or everyone else?
The public has voted and they do not like Windows Phone 7. Also the manufacturers are voting with development funds, and they voting for Android.
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@John Zern

Re: Who should we believe? You, or everyone else?

I'd like to believe Microsoft's SALES figures, but they are refusing to talk. Why?
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@DonnieBoy - Microsoft has FAR more resources to throw at WinPhone than Google has. F-A-R more. PLUS MS have some of the best engineering talent in the world. Bar none.

Sure, they're late to the game, but they arrived strong and are working hard (and for the long-run) on making WinPhone relevant, vibrant and exciting.

If we were to judge Android's prospects on 3 months' of sales, then it would have been classed as one of the tech world's biggest flops.

Let's see where we are in 12-18 months' time.
beam on mobile. Both Microsoft and Google would spend whatever it took, but, the limiting factor is the number of good people you can get, the maximum size of teams, etc. Either Google or Microsoft would spend whatever it too, but, money is not the limiting factor. Right now, Google is farther ahead, much better positioned, and much better focused. Microsoft still going back and forth on tablets, and just made a big direction change on porting Windows to Arm.

Believe me, if Microsoft could throw 5 billion at it, and suddenly be the best mobile OS, they would, but, money will not fix the problem for Microsoft.
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RE: Can Microsoft Right the Windows Phone 7 Ship?
illegaloperation 14th Jan 2011
@DonnieBoy
Maybe you should move out of your mom's basement.
resources to out do Google and take the lead in smart phone OS share.

Give us you opinion and why.
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@DonnieBoy

Sorry Donnie. I've used Apple and Android and while they're attractive toys, they haven't get become professional tools like WP7. Isn't it about time you actually tried one?
WP7. Sure Windows propeller heads like WP7, but the numbers are too small to matter.
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@DonnieBoy

Microsoft may well have billions to spend on WP7 but its irrelevant as the handset manufacturers and carriers dont, and if WP7 doesn't generate subscriptions it will be dropped like a stone.

Microsoft cant control this market, the carriers have control over what gets sold onto their networks based on subscriptions and renewals.
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@BondiGeek

It's simply a better phone. My WP7 is lighter, sleeker and more functional than a iPhone or the mess called Android. I really don't care about sales numbers at the moment. I just wanted a better phone and I got one. The MS Marketplace is increasing exponentially and the seamless integration makes the duct tape and string approach of iPhone and Android a joke. I'm afraid I prefer support from the software development company that makes the global OS, to advertising or marketing companies.

Ideology is obviously more important to some people than functionality wink
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RE: Can Microsoft Right the Windows Phone 7 Ship?
DannyO_0x98 Updated - 16th Jan 2011
@tonymcs@...
And some people think gratuitous slams of competitors make their choice look smarter.

"It's not selling!" "But mine is great!" "I returned mine." "Too many idiots buying inferior phones."

Me: "Arrrrrrrrrrrrgh" Regarding the first three, all could be true. In music, movies, restaurants, technical pens, and books, I have known things I loved that didn't succeed. It happens. Enjoy the things you enjoy while you can.

As to the fourth, it could be true too, but that means Master Phone Company screwed the heck up by designing the phone that you Master User likes and the 10,000 Idiots don't. Because unless you buy a 200 phones for every 10,000 sold, you, Master User, are not going to constitute a sustainable business.
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@tonymcs@... While what is "functional" varies a bit from user to user right now, even if we ignore the big app store advantage that Android and iOS have (and they do add a lot of functionality), WP7 has too many holes in it for anyone to reasonably say it's as functional as iOS or Android.

As for the WP7 app store growth being "exponential" I don't think you know what this word means. Growth so far looks to be linear, which puts the WP7 app store on track to hit 25,000 apps by the end of the year.
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RE: Can Microsoft Right the Windows Phone 7 Ship?
Nickkuk Updated - 18th Jan 2011
@tonymcs@...

"It's simply a better phone." Do you work for Microsoft? Sales figures and customer acceptance would suggest that its nowhere near a better phone, its even missing basic features.
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Multiple issues
DBEvans 14th Jan 2011
To start, Microsoft has a crappy track record with mobile phones; and past users of the prior OSs are leary of being the first ones to return.

Add to that the poor name branding; consider the following names:

1) Apple iOS (on an iPhone)

2) Google Android (on an android phone, or a droid phone)

3) Microsoft Windows Phone 7 (on a Windows Phone 7 phone)

You'll notice that last one doesn't exactly roll off the tounge. It's a boring, although functionally descriptive name. It does not capture the public' attention.

Can anyone really say they are surprised at the challenges and sales results?
@DBEvans

Actually it's just a Windows Phone. They don't market it as Windows Phone 7 (ie commercials)
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RE: Can Microsoft Right the Windows Phone 7 Ship?
OffsideInVancouver 14th Jan 2011
@DBEvans

Yup. I think MS are in the same position Palm were in. I've played with a device in-store and the OS itself is pretty good, but they just can't get traction. The TV adverts are too superficial, no-one is pushing the device in-store and the name is a mouthful.

MS need to look at their consumer products as a whole and work out a way they can unify the marketing of things like the XBox, Phone 7, home server, Windows Live etc. At the moment it's all horribly fragmented.
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RE: Can Microsoft Right the Windows Phone 7 Ship?
illegaloperation 14th Jan 2011
@OffsideInVancouver
How can you be so sure?

I have seen a few Focus, Surround, and HD7 in the wild, but I have yet to see a Pre to date.
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@DBEvans

I just love saying phone twice in a sentence: "Windows Phone 7 phone"

It's not only the uncool Ballmer influenced long naming, it's the false thinking that consumers really care that their phones are somehow associated with Windows. Or Windows ecosystem, whatever that is anymore.

Microsoft last strong hand to play with was Exchange but that's being licensed out to the iOS platform and Android.
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@dave95.

Why would you need to say that? You might as well argue that no one will want to say 'iPhone phone'.....
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RE: Can Microsoft Right the Windows Phone 7 Ship?
dave95. Updated - 16th Jan 2011
@Doctor Demento

No one says "iPhone phone", it's simply iPhone, that's the point, running iOS. They should have kept it at Windows Mobile, not the best naming but least it sounds better than "Windows Phone 7 (please leave off the series) phone". That way if they decide to use the OS for Tablets in the future it doesn't confuse consumers more. "Samsung Windows phone 7 Tablet running Windows Phone 7 phone OS".
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@DBEvans
I don't follow this close enough to agree or disagree, but I have heard that the Android branding is downplayed by the time the phone models are at retail counters. Manufacturers and carriers would do this because they want to create differentiation so as to cover a wider spectrum of customers and so they can charge a higher price for amenities they add to the user experience.

The phone manufacturers don't want a replay of the 90s in the way it affected pc OEMs. Back then, with everyone offering Windows, price became the realm of competition and margins suffered. Everyone needed volume and, thus, market share became king. OEMs consolidated, customer service and, arguably, build quality decreased.
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I think you've hit on an important point ...
daboochmeister 1st Feb 2011
@DannyO_0x98 ... the incentive to the carriers is a difficult proposition for MS right now ... Google did (and can continue to) play the commodity/re-branding chip with carriers, and Apple can leverage their (albeit eroding) I-was-early-to-the-game market dominance. MS? "Leveraging" the reputation of Windows? Even though Windows 7 is doing well at the corporate level, this is a consumer game.

There actually may come a day when even those of us who are fans of open source feel sorry for MS. A little. Maybe. Not today, mind you.
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WP7 is a fine platform, it just arrived too late, if they would have launched it 2 years ago it would have been a smashing hit
budgets, does not bode well.
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RE: Can Microsoft Right the Windows Phone 7 Ship?
Darkninja962@... 14th Jan 2011
@DonnieBoy
You make it sound like Microsoft doesn't spend more money on their projects every year than anyone else.
takes, and are better focused, farther ahead, better positioned, etc. Microsoft can not out spend the competitors (Apple and Google) as they all have so much money that it is not a limiting factor.
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UNLIMITED budget?
Michael Alan Goff 15th Jan 2011
What are you smoking?
riding on mobile, and all three (Microsoft, Google, and Apple) are spending whatever it takes. All three would spend more if it would help, but, after a while, more money will not help. Have you heard that adding more programmers to a late project, will make it even later.

http://en.wikipedia.org/wiki/The_Mythical_Man-Month
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If they have unlimited, what does Microsoft have?
Michael Alan Goff 16th Jan 2011
N/T
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.

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