Microsoft hints it could make phones

Microsoft hints it could make phones
Microsoft has just announced a radical overhaul of its whole organization structure and there is one huge takeaway that we’d like to emphasize. Describing its vision of one family of devices, Microsoft hints that it could make phones in the future.

First, Microsoft makes it clear that its future ‘family’ will consist of “both partner and first-party devices” and then it clarifies that the family would include not just tablets and PCs, but phones as well.

While this is not clearly saying that a Microsoft-made (‘first-party’) is coming, but we definitely take this is a hint in that direction.

Not just that, later on the Redmond company says its family will include “other devices to be imagined and developed,” and if we think hard about devices yet to be developed we can definitely envision smartwatches, glasses and other wearables.

If Microsoft does indeed decide to make a phone, it definitely sounds strange announcing this on the same day as its most important partner Nokia is launching its long-anticipated flagship, the Nokia Lumia 1020. Is that how you interpret the words of Microsoft chief executive Steve Ballmer right below?


(emphasis ours everywhere)

source: AllThingsD

FEATURED VIDEO

47 Comments

1. clevername

Posts: 1436; Member since: Jul 11, 2008

Waitaminute... Victor H., are you really surprised that Steve Balmer made a stupid decision or said something stupid? This is baller we're talking about. He's been straight and narrow for a while but he has a reputation to uphold.

2. Bootutu

Posts: 228; Member since: Jul 11, 2013

Probably tired of watching nokia ruin things....

13. Whateverman

Posts: 3295; Member since: May 17, 2009

That was sarcasim, right?

3. ihatesmartphone unregistered

watch out LUMIA!!

14. Wiki_jaan

Posts: 704; Member since: Jun 24, 2012

nah........

4. rms.max

Posts: 95; Member since: Sep 26, 2012

Nokia will surely go to android if M$ makes phones......Good luck.

17. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

If that's the case then MS please make that phone right this second!

5. roldefol

Posts: 4744; Member since: Jan 28, 2011

Makes one wonder if MS was planning to take over Nokia from the get-go, and then Nokia realized it knew how to handle itself and backed out. Leaving MS without a manufacturer of its own.

6. Googler

Posts: 813; Member since: Jun 10, 2013

MS hints it could make phones, right after it buys out Nokia. That's really the only way I can see them doing the mobile hardware.

9. Dastrix unregistered

True, even if it won't be direct competition, Nokia would be a solid contender. They could also go the Google way; by having 'Nexus'-esque devices made by OEMs like Nokia and HTC, but then again, WP is pretty standard across OEMs.

7. hms2407

Posts: 94; Member since: Apr 25, 2013

Let's just hope things don't go as bad as it went with the kin series

8. Genersis

Posts: 219; Member since: May 29, 2013

...the render looks nice.

10. Alex123

Posts: 241; Member since: Oct 17, 2012

It would be very interesting if Nokia makes Android phone. Microsoft might want to play hardball with Nokia in order not to pay Nokia anything

12. roldefol

Posts: 4744; Member since: Jan 28, 2011

That's assuming Nokia *wants* to make Android phones. Yes, the fandroids want it to happen, and some of the shareholders want it to happen, but who says it's a good strategy to follow the herd?

19. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

Because a lot of us "fandroids" want it and that equates to a lot of sales.. I don't understand why so W8 fans (* you can direct your comment to people without trying sound insulting and clever. Even though using the same term everyone else does is not being clever. But I digress.) If people want to buy your product then you get sales. Sales = money. Money = happy shareholders + not going bankrupt Happy Shareholders = more investors more investors = even more money Even if Nokia is planning on being bought out by MS. The hint that they would be willing to make an Android phone would drive up the price. I don't know why all W8 fans always get angry when this is brought up. It just makes sense.

24. roldefol

Posts: 4744; Member since: Jan 28, 2011

I point my finger at the "fandroids" because I don't see the sentiment coming from impartial parties. If Nokia is doing well with WP8 (as they appear to be currently), what's wrong with that? If MS indeed stabs Nokia in the back and tries to compete directly with them, then we can talk alternatives. But the assumption seems to be that they MUST choose Android.

29. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

They don't have to do anything. Nokia is a company and they can do whatever they want. I never said they MUST. I just said they should because it makes sense and in my opinion would be awesome. At least in a test market in environment to see how they sell and then go from there. If MS stabs Nokia in the back then it might be too late. I'm just saying expand the portfolio. If Apple were to allow them to make an IOS phone then I would encourage that too (even though would never happen). I have owned multiple models of windows, IOS and Android phones but have a preference for Android. If that makes me a "fandroid" so be it. How many people calling me that can say the same.

40. roldefol

Posts: 4744; Member since: Jan 28, 2011

And if you'll go back, you'll see I never pointed the "fandroid" finger at you. But anyway... I get my back up whenever I see the "Nokia needs to make an Android" line because it smacks of OS monopoly. My impression is that Android owners like Nokia as a company, but after 2 years they still can't accept that Nokia chose WP. And it looks like the risk is finally paying off - Lumia sales are up and WP8 is taking a solid #3 berth with Nokia as the face of the platform (as BB10 has fizzled out). Could Nokia make an Android? Absolutely. Would it be well-executed? Probably. But in the meantime, I think they should stick with what's working, keep improving the Lumia line, and not get distracted with multiple platforms.

41. grapeseed87

Posts: 123; Member since: Mar 13, 2013

I can. I was a power Windows Mobile 6.5 user. After that I switched to Android and had all flavors from 1.6 through 2.3. I even had a dual boot Htc HD2 (best phone ever in my opinion complete freedom!). I even used a 3GS for a month and a half >.< Sucked! Then I also had a 4.1.1 device and tablet too. But then I tried WinPho 7.5 and the great work suite integration through office app. Haven't looked back since! Owned 3 Win Pho device - 2 7.5, latest Htc 8x on 8. Looking to move to 8.1 when they release.

45. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

roldefol - It's not that I can't accept that they went with Windows. I just think it's little risky putting all your fruits in one basket. I've said many times that I would love them also to rehash their old OS and improve it. Personally I really like what Ubuntu is doing and the fact that it's getting a lot of carrier support pre-launch would make interesting investment for Nokia or even give them the ability to throw in some of their own flavor into the phones. It's not that I hate W8. It has a place in the market and we need competitors to remind Apple and Google that they weren't always the top dogs and can be dethroned if they piss enough people off. I just personally personally don't trust MS because have been burned by them and their business practices multiple times plus find personally find it too limiting for the things I like to do. grapeseed - I'm actually going to reactivate my Lumia 928 on my secondary line to try it out when 8.1 comes out. I wasn't too impressed with W8 (especially when using it on the HTC version) but I have recommended it to my aunt and uncle looking to upgrade to a first smartphone. My problem is the lack of customization (as stated above) but for them would be perfect because easy to use and they like to take a LOT of pictures. I'm thinking MS might come out with a stronger W9 feature phone that will work in conjunction with X-Box One. Something in my opinion Sony should do with their line. I miss the slide down controller from the original Xperia. Hopefully by then the notorious MS Hubris doesn't kick in that almost killed them with the Xbox One and gave MAC a stronger foothold.

46. roldefol

Posts: 4744; Member since: Jan 28, 2011

I think if Nokia hadn't already declined significantly, I would support the multiple OS approach. But Elop really had to do something drastic to pull Nokia out of the mess it was in, dumping resouces into both the dying Symbian and infant MeeGo. MeeGo looked really promising, and the N9 got really good reviews, but it was too late to introduce a whole new platform. If MeeGo had arrived in 2009, things might have been different. But today's Nokia is not Samsung. It's not even LG. I don't think Nokia has the marketing muscle to sell both WP8 and Android devices effectively. It would be Samsung's Galaxy and ATIV in reverse. Yes, Samsung sells WP8, but it barely gives the platform the time of day since the Galaxy line is paying the bills.

47. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

Good point. I had to buy my N9 from Europe. I loved that phone. Samsung is running into more problems by over stretching. They over saturate the market way too much with their product line and it's going to bite them in the ass sooner than later.

11. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

This is the only course of action if MS wants to advance it market share above the 5 - 6 % if Nokia's board of directors and shareholders expected anything less, than this action, from MS then they are fools. MS can only continue funding Noika for so long and when the negotiations to out right purchase Nokia fell apart - MS must do what it must to further it's interest. In my opinion Nokia is going to be a big loser here if MS carries out this action soon. Nokias Board and its shareholder will demand Elops resignation and become a Android partner. Producing both Android and MS devices because those are its only options. Putting your eggs in one basket is really not a good course of action if you want to get market shares. I have said it before and will say it again Nokia is a hell of a device manufacture and makes second to none hardware but they must marry it to a compelling platform and the only compelling platform out there right now beside iOS is Android and to ignore that fact is really a big blunder.

20. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

Well said!

30. snowgator

Posts: 3621; Member since: Jan 19, 2011

To continue to call for Elop's resignation is to ignore 2 things: The restructioning of Nokia HAD to happen- it was bloated, losing profits, strife with infighting and buried in a sea of conflicting company directions. Elop was HIRED with the vision of gutting the company and making it leaner. He accomplished that, and did it quickly. Painfully and and too quickly in my opinion, but he did it. Secondly, 1 BILLION dollars a year is what Nokia is STILL getting from MS. That is a lot of free money to do what Nokia is going to do anyways: Make phones. If we hit 2014, and Nokia is still a bottom feeder, I can see it. But they are now leaner, have a tenth of R&D expenses, and are the largest producer of the fastest growing OS in the smart phone industry. I think he is still trying to live down mistakes he made in 2010-2011 in most peoples eyes without being given credit with his leadership since.

36. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

Snowgator I agree with most of your response. But remember under Elop Nokia has purchased all remaining shares of the Ericson/Nokia telecom equipment manufacture which was bleeding cash. This to me (I don't know the inside info on why they did it maybe a good deal in the long run) seems a bit contradictory if you are restructuring you don't go any acquire more debt. However, Beside the point the restructuring had to be done as you said and that was painful and the money reportedly save comes from the layoff of employees and cut backs in certain area but profits from WP8 sale are nowhere near what they had hoped for ( which is why MS is exploring its options of making first party phones). Elop will get an earful if not removed and the Board of directors will not ignore that. Entering a partnership with Google will have to be option if not right away but before the close of 2014. Nokia would love to have a cut of the compelling1billion android activations a month.

15. MachidoDen

Posts: 202; Member since: May 30, 2013

Microsoft will really Backstab Nokia once or if Windows phone comes very close to ios market share

16. kindlefireowner

Posts: 504; Member since: Dec 05, 2011

I'm a Nokia shareholder that thinks Nokia should never make a android phone. Why? Look at Sony. They make above average android smartphones that the fandroids and crictics love, but nobody buys them. Have you see more than 3 people with a Sony android smartphone. Probably not.

21. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

And how many people did you see with a Windows phone prior to Nokia jumping into the mix. By your logic it didn't make sense for them to make a Windows phone.

31. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

Sony and Nokia Lack the power to persuade multiple carriers to carry their devices. The days of Exclusives are over. Apple proved this resoundingly when their exclusive contract with AT&T was over and Verizon could sell their device ( they sold a ton of phones that year. Then came sprint and most recently T-Mobile. Samsung realized this weakness on Apples part years ago when it persuade Verizon, AT&t, T-Mobile and Sprint to carry it First Galaxy S line and the rest is history. Now even budget carriers like Virgin and Mobile PCS carry the Galaxy S line making Samsung such huge profits that Apple is responding by creating its own budget phones to spread out to low end carriers. Nokia must stop this AT&T exclusive business but in order to do that they must show that their device is in demand so that Verizon and Sprint will come asking to carry it as well. So it is a bit of a catch twenty two for them. However this is not a impossibility. HTC has shown this with The One. How? A beautifully design Phone with a compelling OS ( look Apple will never license iOS so what's left?) The ball is in the Nokia shareholders hands this coming vote. The last meeting shareholders were not just unhappy about the one horse show they were frustrated so my guest is that Nokia will have to open its self to The Android option soon. They can't wait for companies like Nikon ( who are looking into getting into the smartphone market base on you guest it - Android) to strike first.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.