Huawei exec cracks down hard on Windows Phone, says 'nobody made any money' in it

Huawei's Joe Kelly

Huawei's Joe Kelly

It's not even Huawei's outspoken CEO that has stirred up the next statement controversy coming from the company, but rather its head of international media affairs Joe Kelly, who sat down for an interview with the Seattle Times, discussing the company's current and future plans.

Amidst waxing poetic about the possibility to return to the US market when things with the NSA spying scandal and Huawei telecom equipment calm down, the PR head was asked about Windows Phone. “We didn’t make any money in Windows Phone,” he said. “Nobody made any money in Windows Phone.” It seems that Microsoft's mobile OS won't have a bright future with Huawei, and that's precisely what the marketing exec mentioned - Huawei is putting its WP plans on hold for now, after producing just two devices with the software. That's quite a pivot from the rosier outlook that Huawei had on the matter a year ago, but a lot happened since then, too.

The company is also somewhat worried about the rise of Xiaomi, it turns out, which recently zipped past it to become the world's third-largest smartphone vendor, if we don't count Motorola folding into Lenovo now. Huawei's media exec, however, says that their strategy differs from that of Xiaomi, which sells its phones around cost, and makes bank when the price of components goes down over time. Instead, Huawei will be focusing on the higher end of the market. “We will lose volume in that shift,” Kelly mentioned, which can be expected, so apparently the company won't be fighting for market share, but rather try and maintain healthier margins

source: SeattleTimes

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55 Comments

1. XperiaFanZone

Posts: 2277; Member since: Sep 21, 2012

Huawei logic: 1) Make crappy midrange hardware 2) don't promote it 3) let Nokia take over WP 4) have dementia and forget that Microsoft said they'll turn a profit by next year 5) complain you never made money (jas0055)

2. Finalflash

Posts: 4062; Member since: Jul 23, 2013

No one is going to make any money in WP as long as MS is in the hardware business. It is just ridiculous to think that MS will let someone else eat their lunch because they didn't just buy Nokia's crippled half for research purposes. Anyone who now continues to make WP devices will likely either see 0 success or have MS come in and take it anyway to increase their own chances of making money especially since now WP is free to license (I think). It is a downright retarded strategy and just like how all the OEMs got scared when Google bought out Moto, the same is constantly happening with MS and WP.

5. Planterz

Posts: 2120; Member since: Apr 30, 2012

Google bought Motorola Mobility to acquire some patents to protect Android from lawsuits and for Project Ara. Then the sold the rest to Lenovo.

16. sgodsell

Posts: 6855; Member since: Mar 16, 2013

Everyone knows and its clearly documented that Mr. Elop left Microsoft and went to Nokia. Not even one month went by after leaving MS when he stepped into the CEO position of Nokia. From their he canned all the linux projects, out sourced Symbian and Nokia started to pump out WP devices. After MS bought Nokia's phone division then Mr Elop went back to MS (25 million dollar bonus) to head up another division at MS. MS is a bully, and everyone knows this as well. MS still can't run away from its past image. Even though MS has a small percentage of the overall smartphone market. It personally owns around 95% of its WP devices market share. No wonder why know one wants to make any WP devices. You are competing with MS not only in its hardware space, but also MS dictates and controls its own WP OS. When you pick up and use one WP device you have used them all. Other then screen size, ram, camera's, (one of MS approved Qualcomm CPU's only), no OEM can tweak or change the WP OS in anyway shape or form. Anyone with half a brain can see why hardly any OEMS are making WP devices. It also makes sense why Samsung doesn't want to pay MS for patent fees, because the original agreement between Samsung and MS was based on if Samsung sold so many WP devices, then MS would reduce the patent fees. However when MS bought Nokia, then that changed everything. So how would OEMs make and then sell more WP devices for a profit? Especially since MS owns and controls 95% of its own WP device market. MS is like Apple where Apple controls its own hardware devices. Also in future what's to stop MS from changing or adding fees later on if they acquire a larger market share? Especially since WP is closed source and MS dictates and controls all the shots.

19. cripton805

Posts: 1485; Member since: Mar 18, 2012

I agree with this. Microsoft got greedy with the their XBOX One and how was that launch? They got greedy with app devs and how was that? Why would anyone trust Microsoft at this point. Yes, they fixed those issues, but what's keeping them once they have users that "NEED" their software. They can go out and say "we changed our mind". They change their mind s quickly.

30. Liveitup

Posts: 1798; Member since: Jan 07, 2014

You start by saying everyone's knows as to some how justify what you're saying is true what you when you know that that is not how the story went, its it like Microsoft held a gun to Nokias head, its not like Nokia doesn't have a board of directors. Keep trolling MS, its your job. Even when Android, iOS Samsung go Tiled based homescreen in the future like WP you'll still criticize MS.

35. sgodsell

Posts: 6855; Member since: Mar 16, 2013

So please tell me and the world which parts are not true? Please I dare you. You on the other hand are a known liar.

44. BobbyDigital

Posts: 2124; Member since: May 29, 2014

Android and iOS are not going tiled. Quit dreaming. And unlike you, we're not all Microsoft fanboys who thinks they can do no wrong. Microsoft screwed Nokia. Gave the board $1billion reasons to go WP. Then had Elop tank the mobile division and they bought it for pennies on the dollar. Stop trying to get everyone to see your rose colored view of Microsoft.

50. Cicero

Posts: 1106; Member since: Jan 22, 2014

And Finland now goes trouble.

38. LezginChali

Posts: 1; Member since: Dec 02, 2014

Samsung can not make money out of Windows Phone when its WP flagship is a phone equal to something like Samsung galaxy s3 and its Android phones are ones like Galaxy Note 4 and Galaxy S5. Samsung should offer the same hardware specifications to their potential Windows Phone buyers. This way they can tell everybody that Samsung can be the best, no matter it's an Android or Windows Phone.

45. BobbyDigital

Posts: 2124; Member since: May 29, 2014

HTC is offering the same hardware of the the M8 on its Windows Phone offering. Care to guess how well thats selling? WP just doesn't sell. Period.

51. Cicero

Posts: 1106; Member since: Jan 22, 2014

Why Sammy do that? Did you see specs of wp phones? Max mid range android phones.

7. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

Its true they cant make much money since they have nothing to compete with high end Lumias. Even the low end segment of WP is pretty good with devices like Lumia 535. If they want something profit they got to produce to produce ultra cheap devices like on Android. But I do doubt it'll benefit them that much. Many consider Lumia when its WP. Also demand is more for Android. Though I doubt his statement regarding "none makes money" is because of desperation. I think HTC made some as well as Nokia.

9. nokia12

Posts: 610; Member since: Nov 19, 2013

nope nokia didn't make money... their high end phones didn't sell very well lumia 800/900/920 outside USA the only phone that was able to save the grace for MS was lumia 520 which was sold at a loss to gain market share the only way MS can come into picture is if windows phone 10 is able to run exe files like the desktop version otherwise the 3.5 % market share they have right now will fade away as well , especially now when Nokia is not associated with them in any manner if they can bring the desktop class OS to mobile then it will be a game changer for them and has serious potential of disrupting android dominance .

18. kamejoko

Posts: 248; Member since: Nov 10, 2011

yes! nokia sold very well and have many market share with wp but now nokia also sold company. ^^

17. sgodsell

Posts: 6855; Member since: Mar 16, 2013

Everyone knows that Samsung and HTC were some of the first to make WP devices, even before Nokia made any. There was even LG and Dell on board as well making WP devices, which both left. Even MS was looking to pay some OEMs like Sony and others to make WP devices. The one that is desperate here is MS in order to get market share. Coming this February 2015, WP will be 5 years old since it was first introduced to the public at MWC 2010, and it doesn't even have 3% of the market share. I have seen sales of $39 for lumia 635 for unlocked WP devices. This is clearly a loss leader for MS.

24. Liveitup

Posts: 1798; Member since: Jan 07, 2014

WP will be five in October 2015, not February 2015. If you're going to criticize something at least get the facts. Regardless of the mistakes MS made with WP marketing wise and it coming late to the market the product itself is superior you can see for yourself by how it influenced Android and iOS design language.

26. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

And have you looked at the material design in Android 5.0? There is a difference in how Android is doing vs MS. Android's take has layers and 3D gradients, whereas MS is completely flat. And as we've discussed before, MS isn't the first to use a completely flat UI. But you're saying it's a superior product just because theyre using a flat UI and others followed the trend? It's a design choice, nothing more. That's like saying something like the iPhone is superior because they put out a gold version and others are doing it as well. Regardless, they can influence others all they want, but when they can't crack even 5% after 4 years in existence their supposed influence is meaningless. Especially considering the market share they had with WinMo, and Android and Apple leapfrogged them and moved them from a top 2 player to a distant 3rd in a matter of 6 years. Finally, while you may consider WP superior, that is your opinion. A product is only superior in regards to each customer. What's superior for one may be inferior to another. There is no one device that works for everyone. There's a reason why there isn't any one model for anything, because each person has different wants and needs.

36. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

iOS 7/8 is flat, but it's not tiled like WP. Material Design does have some tile elements, but the tiles work differently from WP's, and it is not flat. Material Design is built on layers, it's the opposite of flat. Saying WP is superior just because iOS and Android allegedly adopted its design is stupid. Even if it was true that Android and iOS took inspiration from WP, that doesn't make it the better OS. If it did, then why has WP's growth been so terrible that even lowly companies like Huawei are giving up on it? Companies like Huawei usually jump at the chance to flood the market with a variety of phones to catch any sales they can, but even they're abandoning WP; that's just sad.

37. sgodsell

Posts: 6855; Member since: Mar 16, 2013

My facts are completely correct. Maybe you should search the internet or if you were at MWC, like I was back February 2010. Then you would have know that WP was first introduced to the public at that show. God you again with the design language crap. So in your eyes Android had no influence on WP at all. Yeah, sure keep believing in those words and maybe someone else will believe you. You know how that salesman saying goes "a sucker is born every minute". I guess MS has to rely on this saying in order to generate its revenue these days with WP ;-)

46. BobbyDigital

Posts: 2124; Member since: May 29, 2014

You keep lying and saying that Microsoft is influencing design language when its clearly Swiss Design that they're all using. That "Microsoft is influencing design" crap line you keep spewing is just a fairy tale to make you WP fanboys feel better about it being a failing OS.

3. snowgator

Posts: 3614; Member since: Jan 19, 2011

Yeah!!! An article that will let everyone slam WP!!! I have no doubt they did lose money. (I am willing to bet Samsung didn't make a ton either.) But HTC stated they have turned a profit and I am sure Nokia/MS has. Besides, MS has removed the fee for using WP and removed hardware restrictions, so they have responded to these criticisms.

12. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Its not like all Android OEMs made money we read all the time about different Android OEMs losing money, same can be said for Windows desktop, those who put in the work makes money, nothing worse than a complainer who hardly makes an effort.

27. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

The thing with Nokia people seem to forget is that, pre buyout, they were getting money from MS to produce WP models. None of the other OEMS had that option.

34. Landmarkcm

Posts: 507; Member since: Aug 11, 2009

Ya & Huawei made junk phones to boot! the W2 was not even much of an improvement over the W1, It didn't even come with a flash for the camera! Samsung's Ativ's are still decent at least. Especially with the 8.1 update on them they are still good Hardware. I actually just bought the original Samsung unlocked Ativ S, from Ebay, Going to give WP another shot..The good thing about WP still is that you don't have to keep upping the processor to the newest quadrupel core on the hardware for it to still run smooth etc.

4. hemedans

Posts: 746; Member since: Jun 01, 2013

-developers made money -original nokia made money through here maps -microsoft made money(q3 financial report)

6. Planterz

Posts: 2120; Member since: Apr 30, 2012

As I said on another site, it's a catch-22. Developers don't want to bother developing for Windows Phone because catering to a 3.6% market share isn't worth the effort. Even big banks and megacorps like Walmart don't have WP apps (but Android and iOS do). But it's these lack of apps that keep people from buying WP devices.

21. ManusImperceptus

Posts: 724; Member since: Jun 10, 2014

Lazy banks you've got over there; here in Denmark all the largest banks and even lots of the smaller, regional ones have a WP app. And bear in mind we're a country of a whopping 5,5 million citizens...!

25. Planterz

Posts: 2120; Member since: Apr 30, 2012

I daresay there's a higher percentage of WP users in Denmark than the USA.

48. Doakie

Posts: 2478; Member since: May 06, 2009

I think Microsoft would have been better served using that $7.2 billion paying companies to make apps for their platform... The one thing that made me return a Lumia 635 was the fact that it didn't have a Safeway app, an app for my bank, and let's not forget an official Dropbox app... I realized that the platform still wasn't friendly to my lifestyle.

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