freedquaker said:
* Most of those increases do not happen due to "Windows" but rather "Nokia". People are simply going for a better alternative than Android if they cannot afford (an unsubsidized) Iphone or simply prefer Nokia. * Nokia is still FAR from recouping its lost market share, and those gains are small in comparison. * A good deal of those gains are about collecting the leftovers after the dismal ends of Blackberry and the former Nokia. * Android, the biggest competition, is still gaining ground, with shares up to 80% globally, also increasing pretty much everywhere. * There is not much room left to grow other than gaining ground at the cost of Apple & Google, which will get harder and harder. * Windows Phone is a distant third in the largest and most significant markets. 4.8% in US, virtually non-existing in China and Japan. * MS wants to be a global player by selling its OS to everyone, but so far, 3/4 of its sales come from Nokia, which MS owns! This defeats the purpose, as its hardly profitable from MS point of view. |
I disagree with most of your post but unlike most people here I want to have a civil discussion...
The thing is Microsoft isn't living in dream land when it comes to Windows Phone marketshare. They understand the market and know they won't demand massive marketshare numbers in the near future. Infact, they predict to have 15% marketshare by 2018. That is certanly doable.
http://www.zdnet.com/microsoft-gets-less-than-10-per-windows-phone-unit-7000020153/
MS also no longer wants to sell the WP OS to anyone. They instead want to sell the ecosystem and services and it is becoming increasingly difficult to do this, even for Google with 80% marketshare. Samsung is cooking their own Android as is HTC and rest. iOS has the most sound ecosystem and Apple revenues show this hand over fist. Google has yet to prove that they can make money using Android and its "everything is free" model without advertising revenue.
Finally, one of the reasons for Nokia/MS merger is increased profitability on each device sold. As it stands, MS has to give Nokia a cash incentive and sells the OS license at a discounted rate. They make less than $10 per device sold. After the merger they are expecting $40 per device.
http://www.zdnet.com/microsoft-gets-less-than-10-per-windows-phone-unit-7000020153/
"Redmond also believes that taking over Nokia's devices and services unit will provide "entry in to key growth markets."
Microsoft says that the current partnership between itself and Nokia means that for every Windows Phone sold, the gross profit margin is under $10 per unit based on royalty payments. Through the Nokia unit acquisition, Microsoft believes this will increase to $40 -- potentially making the risky deal a profitable force in the future. "
