Microsoft Windows Phone 7 Wins Early AccoladesBy Reuters | Posted 2010-10-12 Email Print
Microsoft's launch this week of its Windows Phone 7 mobile operating system, and devices that run the OS, won early accolades, but will it be enough to make a dent in Apple iPhone and Google Android's substantial lead in the smartphone market?
(Reuters) - Microsoft Corp's last-ditch attempt to reclaim its prominence in the smartphone market won favorable early reviews on Monday, but it may come too late to claw back customers from Apple Inc and Google Inc.
The world's largest software company, along with network carriers and handset makers, is planning to spend more than $100 million on marketing the phones, which analysts said could compete with Apple's iPhone, but that may be a struggle.
"We are the first to admit that Microsoft is fighting for third place, not first or even second, at this point; but we believe this is a key step toward rebuilding confidence in their ability to innovate in mobile," Wells Fargo analyst Jason Maynard said in a research note.
"This isn't going to move the market share needle in the short term."
"They have phones with slide-out keyboards, larger screens, high definition outlets -- all features that the iPhone does not have," said Ross Rubin, a consumer electronics analyst at retail research firm NPD Group. "That should help Microsoft's competitive position. There will always be a segment of customers that seek out the newest devices."
The line-up of nine new phones from Samsung Electronics Co Ltd, LG Electronics Inc, HTC Corp and Dell Inc will start to appear in stores later this month in Europe, and in November in the United States on AT&T Inc's network.
The handsets are much closer in look and feel to Apple's iPhone than earlier Windows phones, with colorful touch-screens and "live tiles" on the starting screen for quick access to email, the Web, music and exclusively, games on the Xbox system.
"The user interface is quite innovative because it takes advantage of those precious few seconds when eyes hit the glass and actually gives you something useful," said Al Hilwa at research firm IDC. "It will probably be copied by other platforms over time."
Microsoft said the launch will be backed by heavy television advertising in the run-up to the holiday shopping season, as it looks to vault itself back into the market.
"This is Microsoft's last chance to be a major player in the smartphone market," said analyst Jack Gold of J.Gold Associates. "Microsoft will be required to undertake a massive consumer education campaign if it wants to stand a chance of differentiating itself from iPhone and Android, which have far greater market presence."
British actor and writer Stephen Fry, an outspoken fan of Apple products, praised the phones on stage at a launch event in London.
"When I got one of these (phones) my first feeling was it's fun to play with. I have felt enormous pleasure using this phone," said Fry, who was invited, but not paid, to speak at the event. "Yes, I love Apple, but I'm not a monotheist. I want biodiversity in this market and all of us that love it should welcome that too."