Will Microsoft Extend Surface Model And Manufacture Windows Phones? 118
Nerval's Lobster writes "A day after Microsoft unveiled Windows Phone 8, a company executive explained why the company never implemented native code in Windows Phone 7, declined to say whether Windows Phone 7.x would be upgraded beyond version 7.8, and said Microsoft has no plans to acquire an OEM to manufacture smartphones in-house. Of course, in theory that wouldn't stop Microsoft from building its own hardware in-house, similar to what Google did with the Nexus One. In any case, Microsoft's decision to construct its hardware and software in-house for the Surface tablet project has led to some chatter that it could do the same for smartphones."
It would need to pick up some cheap factories (Score:5, Interesting)
Say in a foreign country well-known for its mobile business which was teetering after having been dealt a big blow by the iPhone. It would need to somehow persuade them to ditch their current production runs and software stacks in favour of their own. It would have to install one of their own men at the top to oversee all this. Then it would have to ensure there is no chance of this business recovering by publicly announcing a new line of software which is totally incompatible with the line it promised to save them with, thus ensuring via the osborne effect none sell at all. Bankrupt, this mobile business could then be picked up for a song, and its patents would really come in handy too. The trouble is, everyone in the business would see this coming if they tried that. Wouldn't they?
companies don't "make" stuff anymore (Score:4, Interesting)
they outsource manufacturing.. and in a lot of cases, even the design and development is outsourced... the "company" that sells whatever it is just slaps their name on it.
the largest electronics manufacturer in the world does not have a household name (except for when they make the news for employer-employee issues). it sells very few products at retail of its own. they are the lowest bidder that makes products for other companies.
apple is a software and design house. they outsource manufacturing. they basically exploit the cheap asian labor of foxconn. foxconn and apple have roughly the same gross revenues, but apple's net is over 10 times higher. foxconn has over a million employees while apple 'only' has about 60k. foxconn net revenue per employee is about $2,200.. apple's is over $425,000.
Re:Nexus One wasn't in house... (Score:4, Interesting)
Given where Nokia stock is right now, I'd say that an outright buy-out may be more likely than partnership if MS decides to make its own phone hardware.
Re:None of this matters... (Score:4, Interesting)
because no one will buy them anyway.
I'm not sure this is true.
I'm not a fan of Microsoft, having watched their bad behavior over the decades. However, one thing I've noticed is that they are very stubborn. They will keep trying, and trying, and trying, and trying, in some markets, until they succeed. Also, they can throw massive resources at a problem for a very long period of time, until it succeeds, thanks to their Windows and Office cash cows. And those cash cows are still delivering the milk. Big time.
Also, I've typically been pretty confident about Google, but when it comes to Android, I'm not so sure anymore. Google is allowing the carriers to run amok with Android, giving Android a bad name. The fragmentation is a real problem. The OS updates (or lack thereof) to existing phones is a real problem. The carriers mangling the experience is a real problem. The spotty support for this feature or that feature is a real problem.
The crappy Android devices are a real problem, too. (I'm not saying they're all crappy, but a lot of them are.) Sure, having several price points is great, but it only takes one bad experience with a crappy Android phone to push someone to iPhone... or maybe, just maybe, a Windows Phone.
If Microsoft can avoid these problems plaguing Android devices, they might manage to get a foothold. And then gain a little market share. And a little more, and a little more. And then, oops, all of a sudden, Microsoft is a real contender in smartphones.
Again, I'm no Microsoft lover. Their anti-competitive practices in the past has left me cold. The fact that every time they dominate some niche, they usually stop innovating, has left me cold. The way they break up products into far too many versions has left me cold. Their nickle-and-dime dance has left me cold.
But there are plenty of examples of Microsoft not giving up, trying again and again, until they get it right (or close enough to right) and become a serious player in an area where they used to be a laughing stock.
Predictions of Microsoft's failure in smartphones is a never-ending echo right now, but if Google keeps stumbling with Android, there may be room for another competitor. Especially with how fickle consumers are. If they are replacing their smartphones every 2-3 years anyway, they might decide it's not such a big deal to try out a Windows Phone for a couple of years... and they might end up sticking with it.