Nokia Lumia 900 Is Critical to Microsoft's Success: 10 Reasons Why

By Don Reisinger  |  Posted 2012-04-09

Nokia Lumia 900 Is Critical to Microsoft's Success: 10 Reasons Why

When Microsoft announced last year that it had struck a deal with Nokia to make Windows Phone 7 the principal operating system in the handset maker€™s devices, nearly everyone wondered if it would work. Nokia phones had been running the Symbian operating for as long as anyone could remember, and Microsoft was trying desperately to be viewed by competitors as a legitimate player in the hotly contested mobile space.

Now that the Nokia Lumia 900 has launched and is currently the top seller on Amazon, it appears many of the naysayers might have been wrong. Sure it€™s very early in the sales cycle for the Lumia 900 and it took Microsoft and Nokia awhile to produce the first glimmer of real success for the partnership, but at this point, all signs indicate the relationship is working and is likely to get stronger with continued progress. Perhaps most importantly, Microsoft might start to see increased market share for its mobile platform.

However, that doesn€™t mean that Microsoft is out of the woods. Quite the contrary, the software giant has far more work ahead of it. And even with strong initial sales, the Nokia Lumia 900 could be a make-or-break device for Microsoft and its future mobile software hopes.

Read on to find out why the Nokia Lumia 900€™s early sales momentum is extremely important to Microsoft€™s future success.

1. It€™s a gateway to Windows Phone 7

For Microsoft, getting people to actually use Windows Phone 7 before they decide if it€™s right for them over the long term is a huge priority. With the Lumia 900 coming in at just $99, the software company can coax folks into doing that. The Lumia 900 is the first product to be a true gateway to long-term Windows Phone 7 use.

2. It justifies Microsoft€™s Nokia investment

As noted, much has been made about Microsoft€™s deal with Nokia. And across many areas of the technology space, the software company has been criticized for agreeing to the deal. If the Lumia 900 can keep up its strong sales momentum, it will go a long way toward Microsoft justifying that agreement.

3. Think of other vendors

Today€™s handset vendors have been waiting for a Windows Phone 7-based device to become popular before they decide to invest in that market. Now that the Lumia 900 seems to be on its way to achieving that goal, the other vendors might try to take advantage of the Windows Phone 7 sales. Think Microsoft doesn€™t care about that? Think again.

4. It puts Google on notice

It€™s no secret Microsoft and Google can€™t stand each other. It€™s also no secret that Microsoft€™s mobile team hates that Android is beating Windows Phone 7 handily. If the Lumia 900 continues its success and helps score more market share for Windows Phone 7, Microsoft might put some real competitive pressure on Google in the mobile market€”for years one of Microsoft€™s top goals.

Can Microsoft Keep Mobile Legitimacy With Windows Phone?


5. Developers, anyone?

One of the biggest issues facing Windows Phone 7 is its general lack of available applications compared with competitors. If the Lumia 900 becomes successful and Microsoft can string together a few more hot-selling handset models, developers might come running.

6. Legitimacy matters at this point

Microsoft has yet to prove that it€™s a legitimate player in the mobile market. As of right now, Apple€™s iOS and Android are the only operating systems that matter. With help from the Nokia Lumia 900, Microsoft might be able to establish itself as another legitimate contender to the mobile market crown.

7. An acquisition consideration

Since Nokia and Microsoft inked the Windows Phone 7 partnership last year, rumors have been cropping up suggesting Microsoft might consider acquiring Nokia outright. If the Lumia 900 succeeds and other devices from the firm follow suit, Microsoft might just consider it. Based on Microsoft€™s current place in the mobile space, it wouldn€™t be such a bad idea to acquire Nokia if it€™s growing. And Microsoft knows that.

8. It builds the hype

One of the core elements of success in today€™s mobile space is hype. With it, companies and devices can succeed; without it, they€™ll fail. In Microsoft€™s case, there€™s almost no hype surrounding its mobile platform. If the Lumia 900 continues to succeed and sales get stronger, hype will follow. And in the process, more Windows Phone 7-based devices will win buyers€™ attention.

9. Nokia stays put

Although Microsoft and Nokia have signed a deal to make Windows Phone 7 the primary operating system on Nokia€™s line of handsets, it doesn€™t mean that the mobile firm will stay put indefinitely. If Windows Phone 7 doesn€™t work for Nokia, the company will have to move to another platform, like Android. But if the Lumia 900 becomes a full-fledged winner, Microsoft won€™t have to worry so much about Nokia going elsewhere for software.

10. Leverage with other vendors

As noted, a successful Lumia 900 could make more vendors want to join the Windows Phone 7 fray. And if that happens, Microsoft might finally have some leverage that it doesn€™t have right now. After all, as nice as it would be to license the software to another vendor, if Microsoft has some successful companies already delivering its software, it can dictate better terms to the new entrant. Leverage is everything in the mobile space€”and Microsoft knows it.

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