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Microsoft already talking smack about future Windows Phone dominance in China

Posted: , by Scott H.

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Microsoft already talking smack about future Windows Phone dominance in China
The first Windows Phone handsets shipped in China this week, and Microsoft must be feeling pretty confident about the launch, as they are already engaging in trash-talking over their presumed future dominance of the Chinese market. Microsoft indicated that it expects to pass up the iPhone relatively quickly due to the lower cost of Windows Phone devices, as well as the variety of hardware choices that will emerge in the coming year.

But Microsoft isn’t content to catch the iPhone – which currently claims around 20% of Chinese smartphone sales – Microsoft China CEO Simon Leung referred to catching Apple merely as an “interim goal”, with the long term plan to catch Android, which currently makes up around 70% of smartphone sales.

We will continue to drive the price down,” Leung said. “Our goal is number one. Having a goal to be number two is not really a goal.

We certainly appreciate a company that is proud of its products, and China in particular is a market that can be fairly sensitive to price advantages. But we also think that when you trail as far behind as Microsoft does that perhaps you ought to let your execution do the talking before you drown it out with the sound of batting yourself on the back. When you make up zero percent of the market, working to reach number two isn't all that bad of a goal, really.

Despite their plan to wage price war on the smartphone market, it’s not obvious that Microsoft will actually be able to create a price advantage against Android handsets, whose OEMs have also been working to drive down the price of entry-level smartphones. Even the premium-priced iPhone may be cheaper in subsequent years, if Apple sells older models in the same way as they've kept the iPhone 3GS around in the U.S. to provide an entry level device.

In all probability Microsoft will have to make the case that Windows Phone is better, rather than merely cheaper. That probably won’t happen until Apollo, but of course Apple and Google won’t be holding still over the next six months, so Microsoft is going to need to execute quickly and competently.

The world's largest smartphone market is at stake. Hopefully they don’t get distracted by delusions of grandeur before then.

source: Bloomberg via intomobile

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posted on 22 Mar 2012, 11:44 3

1. jamrockjones (Posts: 345; Member since: 26 Oct 2011)

Microsoft loves to talk smack, especially when it comes to their phones!

posted on 22 Mar 2012, 11:48 3

2. bloodline (Posts: 706; Member since: 01 Dec 2011)

dream on microsoft.

Android owns you biatch

posted on 22 Mar 2012, 12:55 4

6. haseebzahid (Posts: 1853; Member since: 22 Feb 2012)

hahhaa Lame droidos if its new it doesnot mean it cant beat the 2nd best oh i forgot there are only two curectly ios first and android was las t the 2nd there was no third till now Android will soon get in a big challange

posted on 23 Mar 2012, 00:15 1

18. JSern (Posts: 282; Member since: 22 May 2011)

You must be new here

posted on 22 Mar 2012, 12:01 5

3. sirgigolo (Posts: 1; Member since: 22 Mar 2012)

actually, you are wrong on that bloodline. Microsoft gets a share of each android unit sold. Don't take my word for it, look it up. It's a win-win for Microsoft.

posted on 22 Mar 2012, 12:48 3

5. c.hack (Posts: 614; Member since: 09 Dec 2009)

Good point. Android is just a cheap ripoff of Apple and MS. At least MS phones offer something new instead of a cheap copy like droid.

posted on 22 Mar 2012, 13:08 5

8. theBankRobber (Posts: 682; Member since: 22 Sep 2011)

OK then tell me some things Android has copied from both Apple and Microsoft. I REALLY want to hear some answers besides reading articles stating Android is a copy but FAIL to provide FACTS.

posted on 22 Mar 2012, 15:40 2

14. sprockkets (Posts: 1611; Member since: 16 Jan 2012)

Aside from Metro tiles MS copied nearly everything else about the iphone UI.

posted on 22 Mar 2012, 15:48 1

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

And Metro tiles are really nothing more than neatly organized widgets.

posted on 23 Mar 2012, 01:09

23. snowgator (Posts: 3604; Member since: 19 Jan 2011)

Sniggs, so long as you throw in "neatly organized", I can accept that.

Hope all is well with you, by the way. You don't post like you used to, but it is always fun to hear from you when you do. :-D

posted on 22 Mar 2012, 22:41 1

16. Pdubb (Posts: 248; Member since: 08 Aug 2011)

The iPhone is not what I think of when I see a WP7 device. I don't see anything that is similar. Care to elaborate? It's UI is the most unique right now whether you like it or not is a matter of personal taste, but the UI is nothing like the iPhone.

posted on 23 Mar 2012, 06:32

25. sprockkets (Posts: 1611; Member since: 16 Jan 2012)

MS took their ideas for scrolling, multi-touch gestures and slide to unlock. Apple can if they wanted sue them for 3 of their major patents if they wanted to, but they won't because MS will just sue them and they'll both suffer MAD (mutually assured destruction).

Btw, the FIC moko phone had multi-touch gestures for the google map apps before anybody, including the iphone. So, who copied who isn't that clear anymore.

posted on 23 Mar 2012, 00:16 1

19. JSern (Posts: 282; Member since: 22 May 2011)

Pics or it didn't happen

posted on 22 Mar 2012, 12:38 1

4. akita256 (Posts: 81; Member since: 26 Jan 2012)

Microsoft just doesn't get it. If they insist on keeping those tiles, then until users can totally customize the tiles, I don't see Microsoft ever selling enough phones to catch up to Apple or Google.

posted on 22 Mar 2012, 12:57 1

7. haseebzahid (Posts: 1853; Member since: 22 Feb 2012)

this is where u will be wrong everything has its own beauty if u dont like it others might love it it is unique not copy copy copy like androo

posted on 23 Mar 2012, 00:42

20. snowgator (Posts: 3604; Member since: 19 Jan 2011)

customization will come. I am a hopeless optimist. As WP develops, there will be tweaks and improvements. Now keep it in perspective: Almost anything you choose - web pages, contacts, games, ECT- can be used as a tile, and more and more tiles are being designed to be live and that means you can make your home screen as personalized as you want. But, the presentation is the part that the user is a little short changed. Live Tiles are a selling point, but they are too limited right now in color, design, and fun stuff. I expect that to change to compete a little better in the not to distant future.

posted on 23 Mar 2012, 06:57

26. akita256 (Posts: 81; Member since: 26 Jan 2012)

Well all I know if that I went in my AT&T store to seriously look at a Windows phone. I had the sales rep answer questions that I had about it. I said "I don't ever play Xbox....can I delete that tile". Answer: "No, you can't delete it..........but you can hide it".

I asked how to get to the apps that I might download and the rep showed me about three steps I had to go through to see them. I asked "Can I just create a tile for APPS so I can just click on it and see all of my apps"? Answer: "No, you can't do that".

I asked whether I could create/customize a tile for a sub-category of my emails......for example, to see a Group of emails from my Family....a tile to see a Group of my business partners, etc. Answer: "No, you can't do that".

My series of questions went on and on and the answer was the same every time, "No, you can't do that".

That's why I said initially that if MS keeps those tiles....then they'd better let users customize them in any way they want. Otherwise, at least for me, I feel they are too limiting and don't allow me to set up the interface with my phone in the way I desire. And until they do allow them to be cusomized, I certainly will not consider buying a Windows phone. And my gut tells me that other people have had the same reaction and that's a big part of the reason that MS has not sold many Windows phones.

posted on 22 Mar 2012, 13:12 2

9. theBankRobber (Posts: 682; Member since: 22 Sep 2011)

Its good to think in this kind of way, you can't compete in today's phone market with worries about other smartphone makers. Sometimes its best to go all out, what they need is lots of advertising.

posted on 22 Mar 2012, 13:13

10. jove39 (Posts: 1965; Member since: 18 Oct 2011)

Well...MS need to make WP more functional...like Android...MS has got great eco-system...integration of applications on all platforms...Desktop/Notebook/Mobile...will be real killer for other mobile platforms.

posted on 22 Mar 2012, 13:26 2

11. remixfa (Posts: 14604; Member since: 19 Dec 2008)

Thank you for completely shoring up my arguement on the article about the whole "android and ios in china" BS. Like I said, they should be separate graphs, because android is decimating apple in china.

I have no doubt that WP7 will jump quickly into 2nd place, but its going to be a good while before it trounces android in china or elsewhere.

posted on 22 Mar 2012, 14:03 1

12. Snoobab (Posts: 175; Member since: 07 Dec 2011)

"Microsoft already talking smack"... Honestly, was this article written by a fanboy, designed to create conflict? How about some neutral journalism, Scott H.?

posted on 22 Mar 2012, 14:34 1

13. Scott_H (Posts: 167; Member since: 28 Oct 2011)

Did you read the article? We think Windows Phone is a good product and that the value-oriented pricing strategy is a smart one; that said, talking up how you'll be number one (or even number two) when you launched your first device in the past 24-48 hours is silly, and we'll call out any company that decides makes themselves look foolish. We've certainly called out Nokia, Apple, Google, Motorola, etc., before, and we'll do it again.

posted on 23 Mar 2012, 00:59

21. snowgator (Posts: 3604; Member since: 19 Jan 2011)

So a meek, quiet, polite roll out would have been better?

Not a chance. Microsoft has said since Nokia came on board that #1 is the goal. Their support up to now has not shown that, and the change of attitude is a breath of fresh air and the competition will only make the 2nd tier efforts from Android better. (Let's face it, Apple does not compete in the low end. A cheap three year old device doesn't count. Tango and low cost Androids are new devices designed to compete for those dollars.) They are going to pump up their devices, and the Tango line is a huge part of the strategy. It is part of the selling point to get Nokia to commit to WP. Why act like mobile is a polite game of cards when it is really cut throat and pirate ships?

Nothing- NOTHING- about Microsoft and Nokia going all in makes them look "foolish" or "silly". It does put them out there to eat those words if they fail, but if they turn huge sales and profits then they will just look smart and aggresive.

And I think you kinda know this post was "anti-Microsoft", although not anti-Windows Phone. Which, by the way, is fine with me. You owned it, and I respect that. Your wrong, but I respect you. :-)

posted on 22 Mar 2012, 23:16

17. parkwaydr (Posts: 572; Member since: 07 Sep 2011)

So they think that they are going to take China? That's big talk from a company that just now managed to overtake symbian in Europe.

posted on 23 Mar 2012, 01:06

22. snowgator (Posts: 3604; Member since: 19 Jan 2011)

Which is kinda the point. Overtake this today, improve in that tomorrow, chip away at those guys next, and by the time all the leaders notice, WP is in a position of strength and gaining sales. I am still holding out hope that MS and it's manufacturers can get to 10% worldwide smartphone sales by the close of 2012. I think it is unlikely, but still there is a chance. Either way, that growth you are looking down on now will easily turn from a drip to a stream to wave. WP is a great product, a well supported OS, and quality has a way of seeing it's way to the top. It's not like MS doesn't have the resources and the patience to see it happen.

posted on 23 Mar 2012, 04:00 1

24. lubba (Posts: 1313; Member since: 17 Jan 2011)

Setting a goal is talking smack? The individual who wrote this article is trying to produce smack more or less.

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