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Huawei says Tizen is doomed, Windows Phone - money down the drain

Posted: , by Chris P.

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Huawei says Tizen is doomed, Windows Phone - money down the drain
A Wall Street Journal interview with Huawei's top honcho, Consumer Business Group CEO Richard Yu, reveals the thinking and key strategic choices of a company that, along with several others, has been on the rise lately.

Perhaps most importantly, Yu said Huawei has absolutely no plans to push Tizen forward, despite spending research money on the Samsung-developed operating system and being concerned about a complete reliance on Android. According to Yu, Tizen "has no chance to be successful", which is likely the reason his company has been saying "no" to carriers when asked to design a Tizen phone.

"We feel Tizen has no chance to be successful. Even for Windows Phone it's difficult to be successful."

What's even more, Yu isn't feeling much better better about Windows Phone, either, specifically because the company has been losing money on its WP-based smartphones for some two years now. For that very reason, the exect says all Windows Phone devices are currently put on hold. 

The CEO also told the WSJ that it has no plans to build its own OS, even though "it's easy to design" one. The problem, as most of you will have realized already, is building the ecosystem around it -- a feat that even Microsoft is struggling with. The Huawei exec also said that his company is not planning on making a Lenovo-like acquisition (Motorola Mobility), and will instead focus on R&D. According to Yu, a bigger sales volume (that can be achieved through acquisitions, for example) can help with lowering costs, but it's R&D that will ultimately provide consumers with better value.

Huawei is now the third-largest smartphone vendor based on total device shipments and shipped 52 million handsets last year. According to Huawei, the company is also seeing higher profit margins than before, and is hoping to ship a whopping 80 million devices in 2014.

source: Wall Street Journal (subscription)

59 Comments
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posted on 25 Aug 2014, 09:18 21

1. syncronyze (Posts: 103; Member since: 26 Apr 2014)


Truth.

posted on 27 Aug 2014, 06:40

59. PhoneLuver (Posts: 481; Member since: 05 Jul 2010)


It's almost as if nobody wants to face the fact that people just don't like WP! It's that simple! The metro design just doesn't do it for the majority of customers! Heck I don't like it on my pc either. Add to that the endless scrolling to find apps, the lack of apps, setting up corporate e-mail accounts (This should sooo simple right?!?!) etc makes it a dead, smelly fish! No amount of "pushing" the product into my face will make the customer change his mind!

Let's face it, it's also the real reason Nokia went under!

posted on 25 Aug 2014, 09:20 20

2. nokia12 (Posts: 518; Member since: 19 Nov 2013)


smart executive !!

posted on 25 Aug 2014, 12:39 3

35. brrunopt (Posts: 742; Member since: 15 Aug 2013)


Wheres a though , how about they making a decent competitive WP device ?

maybe that way they would sell a few units and don't lose money ...

posted on 25 Aug 2014, 13:41 7

41. sgodsell (Posts: 3893; Member since: 16 Mar 2013)


Like he said WP is money down the drain. Look no one including Microsoft is making money from WP. With only 7.4 million WP for all of Q2 2014 and declining at that. Also with Microsoft making over 90% of all the WP device sales. There isn't a lot of room for anyone else to get on board. Think about it. Both Samsung and HTC have been making WP devices from the beginning even before Nokia made any WP devices. Even LG, Dell, and some others made some WP devices at the beginning, but left because they were loosing tons of money on WP. Even now with Microsoft making WP free for OEMs, and all the rumors going around that Microsoft is willing to pay OEMs to make WP devices for them. The other problem is WP is still very limited and restricted. You can only use specific components like a select number Qualcomm CPUs only.

posted on 25 Aug 2014, 14:32 1

46. Liveitup (Posts: 1798; Member since: 07 Jan 2014)


Yeah WP is down the drain yet at least 16 new devices are coming for the remainder of the year. WP had different OEM's but the OS was not license free now it is that is a big difference. Samsung lost market share if Samsung represented as much of Android the way Nokia represents WP Android on a whole would have dropped as well then that must mean Android is no good right?, What is happening with WP is great, the more OEMs produce WP and port high-end devices like what HTC did its better for WP. Keep wishing WP death the more you do is the more OEM'S, Apps, users come on board.

Keep hating till your fingers fall off the OS will flourish.

posted on 25 Aug 2014, 19:12 8

52. joey_sfb (Posts: 6010; Member since: 29 Mar 2012)


Liveitup, no amount of bricking will change the fact that WP market share is still declining Qtr. by Qtr..

iPhone 6 larger screen, Samsung Note 4, XiaoMi Mi 4 will ensure the decline continue for the coming Qtrs.

posted on 25 Aug 2014, 20:38 3

54. sgodsell (Posts: 3893; Member since: 16 Mar 2013)


Everything I said was the truth. You just can't handle it. Facts are facts are they not. Is WP decling? Yes it is. Does Microsoft sell over 90% of all the WP devices currently being sold on the market? Yes its a fact. So that means roughly only 740,000 WP devices are split between Samsung, HTC, and Huawei WP OEMs. That's almost nothing for an entire quarter. Even if we are generous and say that 85% is for Microsoft's Nokia, then that leaves 1.1 million WP devices to be split amongst all the WP OEMS. That is still a drop in that barrel, and not worth it for any OEM to invest in right now.
Does WP only support Qualcomm CPUs only? Yes that is a fact. Did LG, Dell, Samsung, HTC, and a few others make WP devices at the beginning. Yes that is a fact. Did LG and Dell drop out after WP 7. Yes that is a fact. I bring facts to the table. You like to make up crap.

posted on 25 Aug 2014, 22:26 1

56. Liveitup (Posts: 1798; Member since: 07 Jan 2014)


Everything that you say may be the truth but it lacks perspective, everything I said is also the truth here is how. Percentage wise yes WP declined last quarter, yet in hard numbers it added 7 million more users last quarter that makes it more WP users than ever before in its history so it compared to last year in terms of percentage but it grew of actual users. That is perspective.

Yes HTC , Samsung and others made WP in the past but again you don't tell the whole story. They had to pay Microsoft then to make WP now the OS is free you even see others like HTC start making WP again, again perspective.

In the past Microsoft placed hardware restrictions on WP now those restrictions have been lifted. WP is growing appwise. Its users see keeps growing as comscore has documented. Android and iOS are influenced design wise by Windows Phone.

You say you talk truth but its not the whole truth just part of it , you are full of crap. Guys like you only want an Android monopoly it has over 85% of the market. I want choice.

Grow up quit trolling.

posted on 26 Aug 2014, 05:10 2

57. juandante (Posts: 463; Member since: 23 Apr 2013)


Livitdown, you are a Microsoft shill. Pure non sense is coming from your mouth everyday, and growing shtwise.

While WP have removed one hardware restriction from others, on Android's side there is almost no hardware restriction to run the latest OS. Android is already compatible with 64 bit chips and can run on an infinite type of hardware.

There is no need on the hardware side to restrict yourself, with WP, and manufacturers understand this. The only place users keep growing for WP is in your head.

99% of my friends who had WP, and they where very very few sent there Nokia in the dustbin because it is limited and useless for everyday life.

HTC made a WP device because Microsoft paid them, and it is not even like it is a new device, the review of Phonearena will confirm this to you. HTC don't have no reason to compete on Microsoft territory and all there dedicated apps that can have access to API that only Microsoft have authorisation.

People don't want monopoly, but people don't want WP limited, ugly, coming from a trojan company that everyone knows and is Microsoft.

posted on 25 Aug 2014, 14:32 1

47. brrunopt (Posts: 742; Member since: 15 Aug 2013)


1st
Samsung , making WP devices ? they just went to the trashcan and put WP on it... They lunced only 2 or 3 devices in 2 years..
HTC , few devices and not very price-friendly ...

2nd
its not declining, they sold the same amount of devices as in the previous quarter
And the number declined compared to the previous year because there arent new devices on the market

http://oi57.tinypic.com/24b25fr.jpg

posted on 25 Aug 2014, 09:21

3. pokharkarsaga (Posts: 385; Member since: 23 Feb 2012)


WP+Nokia=ios+iPhone,tizen is already dead before launch & then remains android.

posted on 25 Aug 2014, 09:26 6

7. nokia12 (Posts: 518; Member since: 19 Nov 2013)


wp is alone .. there is no nokia in it, its all MS .. nokia is waiting for 2016 to comeback in android and bring us the

superpurerview camera + Android + bullet proof build quality + sexy design + Here Maps +

N O K I A 's glory

posted on 25 Aug 2014, 10:04

18. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


Kinda difficult for them to do that when they're owned by Microsoft.

posted on 25 Aug 2014, 10:46 2

25. inlinev (Posts: 16; Member since: 02 Feb 2014)


They sold their smartphone / devices division and associated assets to Microsoft. As a part of the agreement, they are prohibited from competing in the device market until some time in 2016. The deal also included patent license agreements between Nokia and Microsoft but Nokia maintains ownership and control over HERE Maps / Drive with a long term licensing agreement to Microsoft.

In theory, they would be able to release a handset of their choosing in 2016. However, the viability for that is severely diminished because they sold most of their production assets to Microsoft. They could still subcontract through Foxconn or another firm like them but that is likely to cut into profitability. Furthermore, being out of the device market for several years might as well be a lifetime. It is always possible though.

posted on 25 Aug 2014, 11:48 2

31. Deaconclgi (Posts: 405; Member since: 03 Nov 2012)


Fact: Nokia is not owned by Microsoft.

posted on 25 Aug 2014, 17:23

51. marcski07 (Posts: 598; Member since: 25 Apr 2014)


do your research please. :)

posted on 25 Aug 2014, 20:02

53. Damo579 (Posts: 242; Member since: 18 May 2013)


Also Sniggly there was an article a week or two ago saying that Nokia posted jobson LinkedIn for people who know how to program on Android.

posted on 25 Aug 2014, 10:09 1

19. Ashoaib (Posts: 3229; Member since: 15 Nov 2013)


only if they will come with android

posted on 25 Aug 2014, 12:42 1

36. arenanew (Posts: 281; Member since: 30 Dec 2013)


window best

posted on 25 Aug 2014, 09:55

16. Nexus4lifes (Posts: 157; Member since: 13 Feb 2014)


WP+Nokia = ios+iphone - (sales + a functional OS + a sensible set of working apps)

posted on 25 Aug 2014, 11:03 2

26. ManusImperceptus (Posts: 724; Member since: 10 Jun 2014)


Completely ignorant post. The only reality in your equation is the lack of sales. WP is at least as functional as iOS, not to mention a heck of a lot more stylish. WP is pushing on 200.000 apps, including all the heavyweights minus Google's...

posted on 25 Aug 2014, 11:55 1

32. inlinev (Posts: 16; Member since: 02 Feb 2014)


I see what you did there. We can just as easily flip that equation.

Microsoft+OEM+Windows+Servers+Desktops+Laptops+Tab​lets = Mac+OSX - (Sales+Support+Enterprise+Platforms+Scale)

In reality, the weaknesses that OSX has relative to Windows doesn't diminish the value for the millions of people who use Mac. Of the three factors that you used to, "balance" the equation for Windows Phone, two of them are a null value with "Sales" being relative. The total number of Mac OSX users is roughly equivalent to those using Windows Phone. Windows Phone may always be a challenger or it may surprise us all but for those of us who use it, it is a wonderful platform.

I fail to understand why market analysis is used to diminish or bolster technological platforms. As one who appreciates technology and vision, the market will never define what I use. Android and iPhone gets the job done for millions of people around the world but choice is good for everyone. Many people still mourn the passing of WebOS and many of those people are still using it. As far as I'm concerned, that is a good thing.

Passion is what drives innovation. That passion is what drove Steve Jobs to push the envelope when many considered them to be down and out. I am not an, "Apple guy" but I appreciate what they did. In reality, we are all beneficiaries. They introduced new standards for quality and interaction that have changed the landscape on a massive scale.

In my opinion, Microsoft is actually a better company because Apple raised the stakes. They have also taken an equal measure of inspiration from Google and Microsoft's success with cloud services reflect that. Office 365 is a run away success and that is just the tip of the iceberg. Again, we are all the beneficiaries from Google's innovation in the market. That includes those who use their services as well as those of their competitors.

In like kind, Apple and Google take inspiration from Microsoft and many others in the market as well. What is the point? If you love technology, you will encourage more platforms, more choice and success for all of them. It's pretty cool when you think about it but it could just be me.

posted on 25 Aug 2014, 14:04 4

42. sgodsell (Posts: 3893; Member since: 16 Mar 2013)


Wow, Office 365 a runaway success is it. Back in June Office 365 had 1 million users. So is that a runaway success. Or is selling 255 million Android smart phones last quarter a success? Oh, and Android is still maintaining 65% of all the tablet sales. Microsoft and its hype machine. Everyone cannot live without Microsoft Office. Tell that to the millions of people who have Android devices and that don't use MS Office. Considering there are tons of other office products and a lot of them free and very good as well. No one wants to be locked down anymore. Microsoft has a habit of that with their products in the past. People don't forget what Microsoft was like. As the saying goes, a leopard can't change its spots.

posted on 25 Aug 2014, 14:32 2

45. AfterShock (Posts: 3698; Member since: 02 Nov 2012)


The world got tired of renting Office, agreed.

posted on 25 Aug 2014, 21:57 3

55. 0xFFFF (Posts: 3806; Member since: 16 Apr 2014)


"Microsoft and its hype machine. Everyone cannot live without Microsoft Office."

Thank you for bringing this up. Everyone, and I mean everyone, I have ever worked who has used Microsoft Office wants to dump it. There is absolutely no interest in "more Microsoft Office".

Especially when all Microsoft has to offer is a "pay forever" plan that holds your documents hostage to their licensing, contracts and spyware ridden apps.

Pushing forever pay Microsoft Office on people is exactly how to get people to flee in a hurry. Just one of the many reasons WP is sinking like a stone.

posted on 25 Aug 2014, 09:22 5

4. AfterShock (Posts: 3698; Member since: 02 Nov 2012)


Not many want to saddle up a dead horse.

posted on 25 Aug 2014, 09:24 5

5. Felix_Gatto (Posts: 911; Member since: 03 Jul 2013)


We should give a warm welcome to the fresh platform such as Tizen, Firefox OS, Sailfish, and Ubuntu Touch. In the other side WP is an old contender because it exists since 4 years ago and still can't bring a good profit.

posted on 25 Aug 2014, 09:28 5

9. xperiaDROID (banned) (Posts: 5629; Member since: 08 Mar 2013)


A warm welcome is a must to the fresh platforms, but Tizen is really not ready for the smartphone and tablets yet, even Samsung Z is scrapped.

posted on 25 Aug 2014, 09:37 1

11. Felix_Gatto (Posts: 911; Member since: 03 Jul 2013)


Samsung is a huge company, they have a lot of resources to make an OS. l think they just need more time.

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