Windows Phone Handset With a Microsoft Brand Is a Bad Idea: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2012-06-25 Email Print this article Print
 
 
 
 
 
 
 

NEWS ANALYSIS: Microsoft says that it won’t be building its own Windows Phone and that is a smart move. Microsoft has much to lose and little gain from trying to compete with prospective Windows Phone OEMs. Right now it needs to focus on gathering allies to help grow Windows Phone market share.

NEWS ANALYSIS: Microsoft says that it won€™t be building its own Windows Phone and that is a smart move. Microsoft has much to lose and little gain from trying to compete with prospective Windows Phone OEMs. Right now it needs to focus on gathering allies to help grow Windows Phone market share. 

An analyst recently said that Microsoft might be considering launching its own Windows Phone handset to compete against the likes of Apple€™s iPhone and the Samsung Galaxy S line. However, the company said in a recent statement that it had no plans to do that  and would continue its policy of providing software to third-party vendors. It seems that Microsoft would rather partner with companies like HTC and Nokia, rather than make them competitors. 

It€™s a smart move. Since its inception, Microsoft has decided that making friends with other technology companies is far more profitable than making them enemies. And in the mobile space, despite its troubles, the same policy applies. To change that now and attempt to try its luck in the mobile market would be a huge mistake that could have lasting negative consequences compared to whatever it might gain from marketing its own brand name smartphone. 

Here are the reasons why Microsoft shouldn€™t even consider building its own Windows Phone-based device

1. Learn from Google 

Google has made the somewhat misguided decision to partner with handset makers to deliver its own branded products, known as Nexus. The devices were supposed to showcase the latest version of the company€™s software, and at least initially, demonstrate the best features. However, the devices were quickly overlooked as better alternatives hit the market. Microsoft shouldn€™t want any part of that. 

2. Vendors won€™t like it 

One of the main reasons Microsoft never offered up its own devices over the years related to its desire to not compete against those who were using its software. The company reasoned that by competing in the hardware space, it might hurt software licensing. It was right€”and it€™s why a Windows Phone from the software company would make no sense. 

3. What€™s the upside? 

When the idea of bringing a device into the market is actually considered, what sort of upside can really be found? Yes, companies like Apple and Samsung are successfully and profitably  delivering smartphones. But the vast majority are not as successful. Microsoft has enough to worry about with software. At this point, there€™s no upside compelling enough to make Microsoft market its own handsets. 

4. Costs will rise 

If Microsoft launched its own smartphone anytime soon, the company would be forced to take on millions in additional research and development and production costs just to get the product to store shelves. That will put pressure on Microsoft€™s profit margins and that won€™t help Microsoft€™s bottom line or its relations with investors. 



 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 
 

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