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Windows Phone 7 Sales Continue To Struggle

rtfa-troll writes "Even with the pre-Christmas buying rush, Microsoft is already desperately offering a new buy one get one free offer similar to the ones they gave for the KIN. According to the article, 'Windows Phone 7 devices can't even manage two per cent of the fortnight's sales.' These aren't official Microsoft figures; they come from online shopping sites. But since Microsoft official sales figures seem subject to manipulation, this is perhaps one of the better guesses we will get at the success of Windows Phone 7 until well into next year. This also strongly backs up other reports of deeply disappointing phone sales. Even Microsoft supporters have been wondering for a while whether it's time for Ballmer to go. If the sales reports are true, then he may be pushed before he jumps."

36 of 351 comments (clear)

  1. Less editorialization please by saleenS281 · · Score: 4, Insightful

    BOGO offers are in no way a sign of desperation. WTF is wrong with the submitter, and Soulskill? Android has been doing BOGO's or outright free phones for months/years now. Is it "desperate" or "in trouble" or running with "disappointing sales"? Hey, let's all hate on Microsoft without a shred of evidence, it's slashdot!

    1. Re:Less editorialization please by larry+bagina · · Score: 3, Insightful

      Additionally, Microsoft licenses the OS to manufacturers (like HTC, Samsung, etc) who sell to carriers (Verizon, ATT, Sprint, etc) who sell to consumers. Carriers take a loss on the phone to make money on the monthly charges for the next 2+ years. Carriers set the "retail" price and BOGO offers, not Microsoft/Google, not HTC/Samsung/LG/Motorola.

      --
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      These aren't the 'roids you're looking for.

    2. Re:Less editorialization please by theodp · · Score: 3, Interesting

      Samsung Galaxy S (T-Mobile) – buy one, get one free! (Android 2.1 OS). Yes, kind of looks like you need Steve Jobs' reality distortion field to convince people to pay undiscounted prices. :-)

    3. Re:Less editorialization please by fuzzyfuzzyfungus · · Score: 3, Insightful

      It is editorializing(hardly shocking in a slashdot submission); but extremely low phone prices, on average, are actually a rather ambiguous sign for the success of a platform, depending in no small part on what the platform was intended to do.

      If Windows Phone 7 was supposed to beat Apple at its own game, the fact that Apple can keep merrily having among the highest 'on-contract' prices with a shitty carrier, while MS has to basically give them away, then this is a sign that MS is failing. If, on the other hand, Windows Phone 7 is supposed to buff MS's mobile marketshare enough to court developers, ideally without hemorrhaging too much money in the process, then contract-subsidized cheap hardware is a pretty logical way of doing that. No matter how good or bad a platform is, its sales will likely be better at a somewhat lower price and developers care about how many potential customers your platform represents. Also, from a pure financial perspective, it strongly depends on who is taking the hit to make the phones that cheap. If MS is getting their licensing fee, and some hardware OEMs are getting squeezed, that will just be business as usual. If MS has been forced to offer a giant pile of 'well, legally, they aren't actually kickbacks and subsidies' then shareholder enthusiasm is going to cool, possibly fast.

      Similarly, with Android, if Android is in fact Google's move into Apple's territory, then the continued low average handset price, and comparatively small market for the Google-blessed 'flagship' models is bad news. On the other hand, if(as was commonly suggested originally) Android is intended as a relatively low-cost way of kicking the dumbphones of the world in the ass and onto the internet, where they can then be used to look at Google ads, then a low handset selling price is actually a feature.

    4. Re:Less editorialization please by tomhudson · · Score: 5, Insightful

      Which is funny because if you look at the web stats of Slashdot, 90% of visitors are using Windows computers. LOL, bunch of poseur wannabes

      [citation needed]

      Yes, a large portion of the visitors to slashdot use Windows. Then again, when compared to the general population, a large portion don't.

      That so many Windows users see value in, and frequent, a site that is definitely pro-linux/bsd/open source, and what is arguably, even with all the "web 2.0" junk, the most influential tech forum on the net, says that Ballmer is right when Microsoft tells the SEC that linux and open source are the biggest threat to Microsoft.

      Think about it - even with less than 1% of the desktop, and being distributed for free, it's more of a threat than Apple, who are worth more than Microsoft.

      I don't call them poseur wannabes - I call them fresh blood :-)

      The alternative would be an echo chamber.

    5. Re:Less editorialization please by saleenS281 · · Score: 3, Interesting

      Comparing a brand-new phone to ones that already have market-momentum is brain-dead, as has already been discussed on this forum. Android sold nowhere near as many phones their first day/week/month when it first came out. iPhone wasn't much better.

    6. Re:Less editorialization please by rmcd · · Score: 5, Informative

      Unless I'm missing something, it's a highly misleading summary. In the TFA, the quoted figures are from a UK price comparison site. It's not sales, it's site visitors comparing phones.

      There is a discussion of sales, but it's from an article dated Nov 9.

      This is an embarrassing post, even by Slashdot standards.

    7. Re:Less editorialization please by Threni · · Score: 4, Funny

      > BOGO offers are in no way a sign of desperation.

      Exactly. It's why you often see BOGOF offers on PS3s, digital cameras etc. It's what you do when your product is a runaway success and you can't keep up with demand.

    8. Re:Less editorialization please by ColdWetDog · · Score: 4, Funny

      Which is funny because if you look at the web stats of Slashdot, 90% of visitors are using Windows computers. LOL, bunch of poseur wannabes

      Love the sinner, hate the sin.

      --
      Faster! Faster! Faster would be better!
    9. Re:Less editorialization please by Anonymous Coward · · Score: 5, Insightful

      Comparing a brand-new phone to ones that already have market-momentum is brain-dead, as has already been discussed on this forum.

      And, this is Windows Phone version SEVEN, as clearly described in the name of the product. This might be a brand-new phone to mobile application developers, but for the other 99.9% of the people this is just a new revision of the same old horrible Windows phone operating systems.

      It doesn't help at all that this phone is being advertised as "the smartphone for people who don't want a smartphone." Good job finding that marketing niche, Microsoft. What next? Microsoft Fruit Basket 7.0, for people who hate fruit? Microsoft Electric Car 7.0, for people who hate driving?

      It also doesn't help that Microsoft's idea of "synergy" doesn't even bother to include embrace, extend, and extinguish anymore. Instead of eating the competition, the divisions at Microsoft are just eating each other. They didn't make a mobile version of XBox live that works on lots of devices, but works better on Microsoft phones. They didn't make a mobile version of the Windows Media Extender that works on lots of devices, but works better on Microsoft phones. Every time Microsoft comes out with something truly cool or innovative, they never let it stand alone. They bundle it to a flailing product, and then act surprised when it all fails together.

    10. Re:Less editorialization please by zach_the_lizard · · Score: 3, Informative

      There's also the sales of the first Android devices; the T-mobile G1 sold 1.5 million devices it sold before even being released. The same article mentions the iPhone 3G selling 1 million devices in 3 days. Both of these phones are comparable to WP7; it's not like they are leagues apart. They are roughly comparable.

      --
      SSC
    11. Re:Less editorialization please by bell.colin · · Score: 5, Insightful

      Because they are all using their corporation approved desktop's instead of working.

      Users not posting on /. from work? You must be new here...

    12. Re:Less editorialization please by Mordok-DestroyerOfWo · · Score: 4, Insightful

      It's an operating system, not a religion. I'm using Windows 7 right now as I'm perusing /. while avoiding doing some photo touchups in Photoshop. In a few hours I'll boot into my Debian system and continue working on a project in Python. I feel no shame when I use Windows, it's a tool...it's there to aid in completing a job.

      --
      "Never let your sense of morals prevent you from doing what is right" - Salvor Hardin
    13. Re:Less editorialization please by camperdave · · Score: 3, Insightful

      First day sales? What is this, a movie? First day sales are simply a measure of the effectiveness of the advertising/gullibility of the crowd. Repurchase figures are what you really need to look at.

      --
      When our name is on the back of your car, we're behind you all the way!
    14. Re:Less editorialization please by Crudely_Indecent · · Score: 4, Insightful

      I read /. at work, where I'm not allowed to have a Linux workstation. The servers I work on are Linux though, so it's not like the organisation is anti-Linux, they're just frightened they might be asked to support Linux workstations (not mine of course, but others). Just because someone uses Windows to browse /., doesn't mean they have a choice.

      --


      "Lame" - Galaxar
    15. Re:Less editorialization please by ScrewMaster · · Score: 4, Insightful

      Apple isn't nearly as much of a threat.

      More to the point, Apple isn't trying to be a threat. Not really, in spite of their ad campaigns. Apple is a hardware company that caters to a specific clientele, and to their credit they're happy with that. That clientele also happens to not be the same people that Microsoft is after.

      Apple really has spent very little effort wooing the corporate world, because once you do that, you will be expected to provide a level of support that is far beyond that offered to schools or individuals. In addition, you'll have to supply and maintain an entire ecosystem of corporate connectivity products. I doubt that Jobs & Co. really wants the headaches, and should they? They're already making billions from the Mac, the iPhone and the iPod/iTunes combo, and if they go corporate they'll be competing with commodity operators like Dell and HP/Compaq. Big companies buy from the lowest bidder, and it's pretty obvious by now that Apple has no intention of ever being the lowest bidder.

      --
      The higher the technology, the sharper that two-edged sword.
  2. Microsoft Needs to Make a Compelling Case... by TomHandy · · Score: 4, Interesting
    A new phone buyer has a ton of options, between the iPhone, Android, Blackberry and hell, even webOS. For Windows Phone 7 to succeed, Microsoft needs to make a strong and compelling case that says "This is why you should buy a Windows Phone instead", but so far I haven't really seen it. The marketing message seems a bit muddled, focusing on the notion that people use their devices too much and that Windows Phone is all about using it as little as possible - an interesting idea perhaps, but not the strongest and most dynamic message. The real question is if there are a lot of people really dying for that - in theory you might think there are, but in practice people seem to be pretty happy with the way things are working.

    I don't think the Windows Phone approach is bad actually - there is something to be said for a device that really streamlines the experience - but the question is how much the market wants it. I'd have to see evidence that iPhone/Android/Blackberry/webOS users are really dissatisfied with the current way of doing things (in the way that pre-smartphone users were with their regular phones).

  3. To recap... by giuseppemag · · Score: 4, Insightful

    ...no official figures, no official declarations, no after-holiday-season data, no actual news.

    I understand this is slashdot, but come on. Criticism sticks better if it is documented, otherwise it's just another form of shilling.

    --
    My book: Friendly F#, fun with game development and XNA; my game: Galaxy Wars by VSTeam; my gamedev language: Casanova.
    1. Re:To recap... by hedwards · · Score: 3, Interesting

      The problem is that MS is not likely to let on if the Windows 7 phones are as big a flop as the Kin was. I've heard several figures for that debacle, none of which is over 10k units sold. Other than that, I'm not sure where you'd go to get real numbers from, perhaps AT&T.

  4. Re:Slow sales.. by user · · Score: 3, Informative

    Um, what? t-mobile has them right now (http://htc.t-mobile.com/hd7/hd7-windows-mobile-lp?WT.ac=0918HOM04) and Sprint (http://www.pcmag.com/article2/0,2817,2370604,00.asp) and Verizon in early 2011 (http://www.pcmag.com/article2/0,2817,2372743,00.asp)

    --

    Emacs is for experts. Pico is for beginners. VI is a disease.

  5. Mission Acomplished by frovingslosh · · Score: 3, Insightful

    Just like the commercials say - "The Windows 7 Phone. A phone to save us from our phones". They even show how people want to use the other phones, with the clear message that we will not want to use a Windows 7 phone nearly as much. They seem to have actually accomplished their goal, and created a phone that people will be far less obsessed with using than cooler toys like iPhones, Androids and Blackberries.

    --
    I'm an American. I love this country and the freedoms that we used to have.
  6. Re:Should have chosen a different carrier by xigxag · · Score: 3, Insightful

    I'd say the opposite. They should've released the OS later, when they figured out some kind of compelling difference that Windows Phone 7 could offer over the competition. If they can't differentiate over must-have OS features (and a different skin doesn't count) , they should've worked on something like ultra-long battery life, SDXC expandability, unlimited streaming save-to-the-handset music free with a charter contract, or even free copies of Windows Home & Student. Some "top this" feature they could flog over the competition.

    At this point, if someone can't figure a way to be at least 9 months ahead of Apple, they shouldn't even bother to play.

    And yes, fire Ballmer. Let's not kid ourselves, Microsoft is still making money, but basically by sheer brute force, not through any brilliant strategizing. XBOX360 should've cleaned PS3's clock, but couldn't close the deal because of quality control issues. Vista should've run rings around OSX, but fumbled because of quality control issues. Kin1, Kin 2? MS knew those were direct-to-video flicks even before wrapping up production. Windows Phone 7, despite the hype, will be a failure unless Microsoft is willing to do an XBOX redux and take years of real losses for market share and bribe or buy a crapload of hot-shot appmakers the way they did with Bungie.

    --
    There are two kinds of people: 1) those who start arrays with one and 1) those who start them with zero.
  7. Microsoft releases actual cow turd as phone by David+Gerard · · Score: 3, Funny

    Desperate to stay competitive against iPhone and Android mobile devices, Microsoft has released a two-pound lump of actual cow faeces that they claim constitutes a phone.

    Windows Mobile 7, in development for several years, strips the mobile telephone down to its fundamental essence: futility, annoyance, malfunction, inconvenience and a socially unacceptable odour. Confounding analyst expectations, the turd is in fact shined.

    US mobile carriers hailed the turd as the perfect physical complement to their world-famous customer service. "This powerful product will promote our growth!" said John Harrobin of Verizon Wireless. "We're marketing them as edible."

    "We think we can really work the brand equity," said Steve Ballmer, modelling the optional shoulder-length rubber gloves. "Everyone works with our stuff all day every day. They know who Microsoft is and what we do."

    "How about making our customers actually swallow our bullshit physically?" said John Harrobin. "Windows Mobile 7 was my idea."

    Picture: Steve Ballmer overjoyed at Windows phone sales figures.

    --
    http://rocknerd.co.uk
    1. Re:Microsoft releases actual cow turd as phone by westyvw · · Score: 4, Insightful

      If there is one thing I have learned using MIcrosoft products (and subsequently banning them from my home and business truth be told) is that in the end Microsoft software will bite you hard at some point. Sometimes its a policy change, sometimes a compatibility change, sometimes a virus, but in the end it will hurt. They will continue to promise a rosy picture of the future, and continue to dazzle in the short term, but then the pain will happen again, and the only way off the crazy train that is Microsoft is look behind the curtain and get out while you still can.

  8. Stop the constant WP7-bashing. by the+linux+geek · · Score: 4, Interesting

    So far I really haven't seen any indications that the OS is doing badly. My AT&T store said that the demand for them was high, especially for the Focus, and I've seen similar responses from the T-Mo reps. I don't think you can write off the system until it's been released on the CDMA networks and has had a few updates.

    My personal experience with it has been somewhat mixed. The UI is superb, lightyears beyond Android, but it has its share of weaknesses - a big one I can think of is lack of socket support in the public API. I think this will probably be added in the January update, but in the mean time, it means there are a lot of application types that just aren't available, like an IRC client. The dev tools are generally excellent, just limited in terms of exposed functionality.

    1. Re:Stop the constant WP7-bashing. by hxnwix · · Score: 3, Insightful

      So far I really haven't seen any indications that the OS is doing badly.

      There are clearly more Windows 7 phones in stock than there are people buying Windows 7 phones. If this were a hot seller, there wouldn't be inventory for a buy one get one free deal.

      Also, anything following your disclaimer is sure to actually be happening: "So far I really haven't seen any indications that........"

    2. Re:Stop the constant WP7-bashing. by aristotle-dude · · Score: 4, Interesting

      My personal experience with it has been somewhat mixed. The UI is superb, lightyears beyond Android, but it has its share of weaknesses - a big one I can think of is lack of socket support in the public API.

      So you think that square boxes and text that is cut off is light years ahead of other UIs? Have you browsed the web much? MSFT basically took ideas from flash websites and created an inconsistent UI out of it. Should I really expect any more though from someone with the username "linux geek"? The UI is crap.

      The lack of socket support is a minor issue compared to the lack of copy and paste and a lack of multitasking this late in the game. They rushed it out. There are gaping holes in the API which cause it to be much harder to develop on compared with even Android let alone iOS. iOS provides a rich set of frameworks whereas MSFT platforms usually offer only basic functionality and you have to either "roll your own" or buy an off the shelf third party library.

      --
      Jesus was a compassionate social conservative who called individuals to sin no more.
    3. Re:Stop the constant WP7-bashing. by bds1986 · · Score: 4, Interesting

      My AT&T store said that the demand for them was high, especially for the Focus, and I've seen similar responses from the T-Mo reps.

      I'd expect nothing less from a salesperson. "This item is wildly unpopular, we have crates of them sitting out the back and we'll never get rid of them all, but please pay the full advertised price" isn't exactly a good marketing pitch. We really need to see figures from a third-party without a vested interest in moving units to determine WP7's success/failure.

    4. Re:Stop the constant WP7-bashing. by sideslash · · Score: 3, Interesting

      The lack of socket support is a minor issue compared to the lack of copy and paste and a lack of multitasking this late in the game. They rushed it out. There are gaping holes in the API which cause it to be much harder to develop on compared with even Android let alone iOS. iOS provides a rich set of frameworks whereas MSFT platforms usually offer only basic functionality and you have to either "roll your own" or buy an off the shelf third party library.

      (*yawn*) When the iPhone was released, it didn't have _any_ SDK for writing installed apps, and it stomped all over existing smartphone platforms that did support custom apps, multitasking, clipboard, and sockets -- such as the old Windows Mobile. What made the iPhone a huge success was not its SDK or apps. Just stop think about that for a bit. I think it could be entirely possible for a new smartphone platform to "succeed", i.e. sell widely and turn a large profit, with a tiny app store selection -- if people found the core experience "cool" enough.

      Microsoft is rolling out features slowly and deliberately. In my opinion (speaking as a WP7 app dev, previously iOS), they are doing a great job on quality of the specific features they've put out so far. There are loads of open source stuff that fills in the holes (such as SQLite). Now, don't get me wrong, I do like to see people complaining about missing features -- that's great, because it keeps pressure on Microsoft to fill in the holes. But some people need to cut out the baloney about the whole platform failing because e.g. non-HTTP socket apps can't be written yet.

    5. Re:Stop the constant WP7-bashing. by Missing.Matter · · Score: 3, Insightful

      So you think that square boxes and text that is cut off is light years ahead of other UIs?

      Well, that's the form of the UI, but it's the function that I find more compelling than other phones. The focus for Windows Phone 7 is on Hubs rather than apps. While an app focuses on a single task, a hub integrates similar tasks. For instance, on iOS, if I want to check my friend's twitter feed and a facebook wall, I need two apps to do this; I have to launch one, close it, then launch another. On WP7 there is a single location for this information, and what's more is hubs are extensible, so any service can integrate with them.

      Tiles serve to visualize the contents of hubs (The people tile for example shows pictures of your contacts, the pictures tile shows your photos) and the "cut off text" along with parallax indicates your relative location in the hub. While it seems like these are simply aesthetic choices, if you actually use the device you find they serve a functional purpose

      And anyway, what exactly is the competition doing? Want to talk about iOS, which is essentially a grid of icons? iOS is hardly consistent, as every app has a custom interface. Yes there are a handful of standardized UI elements, but beyond that there is no standardization. The same is true for Android, where every manufacturer is free to re-imagine the user interface.

  9. Not too bad actually by __aazsst3756 · · Score: 4, Informative

    Ars summed it up nicely, their launch numbers are not as bad as some are making it sound, certainly not horrible Windows phone 7 launch numbers explained.

    They have a lot to add to this new OS to catch the competition, but they know that, they simply had to ship. Overall it is a very well laid out OS with some great ideas. In the big picture the smartphone market is still very young. Microsoft has a lot of talented people, and backed into a corner Balmer might just let them perform. It is way too early to start pointing fingers and snickering.

  10. It's time to rebrand by Forrest+Kyle · · Score: 5, Insightful

    They shouldn't have attached the "Windows" brand to their phone. Windows is a desktop operating system. It has a popularized reputation (warranted or not) for being unwieldy, crashing, being expensive, and mostly dedicated to the accomplishment of boring or undesirable tasks like work, writing papers, using Office, etc. They should have created a new brand for the phone.

    Having a "Windows Phone" from Microsoft is sort of like IBM coming out with a social networking site called "The IBM Human Interaction System" and then marketing it to young people as hip and cool. There is an emotional and/or psychological disconnect between the nature of the product and the mental conception people have of the brand.

    Even though it's stupid, when I see the Android ads I think "oh cool, an ANDROID! I wonder what it can do? It looks futuristic. I kind of want one." (note: I don't have a smart phone because I think they are stupid.) However, when I hear the word "Windows Phone", it makes me feel like getting one would be like keeping a chunk of my job in pocket. No thanks.

    1. Re:It's time to rebrand by cyber-vandal · · Score: 3, Funny

      Microsoft trying to be cool is like dad trying to dance.

  11. Re:Phone 7 doesn't feel quite ready yet by Shemmie · · Score: 4, Interesting

    I can kinda relate to this. MS is my bread and butter, but when faced recently with Android for the first time, and leaving 5 years of Windows Mobile, or WP7, I had to opt for Android. And I'm really glad I did.

    It is weird, but Android feels like the Windows of the smartphone World. I can install anything I like on it, which will lead to a support nightmare in years to come, when non-tech have installed the Chinese 'super speed up my phone' app. But in allowing people to install what they like, I'm there. I don't want my mobile phone locked down tighter than a ducks ass into iTunes or Windows Marketplace, tyvm.

    And those WP7 ads are fantastic - the phone you don't need to use much. What the hell? I admit to having to pull myself away from my new phone, as between using it as an ebook reader, mp3 device, gaming platform, web browser, ticket system for my public transport, etc - this thing is immense. I 'want' to use my phone a lot - as a commuter, it's a fantastic device. But then, when has MS marketing ever 'helped' MS - I swear they're paid per cock-up they achieve.

    The lock-in on WP7, and massive restrictions at launch feel very unprofessional. MS knew they were playing catch-up, and had to launch something superb, that was ahead of the game. The gaming does look good on WP7, but it seems they completely abandoned their enterprise market to do it - what used to be fleets on Win Mobile devices will soon be no more - and still MS keeps saying "Yes, it's coming. You'll be able to do 'x' on it, soon". It should have been ready to cater to business on day 1, not as an after thought.

    It seems MS really believed they could launch a consumer product that would float on its own merits - even with my MS tinted glasses on, I admit that's something they've never really been good at. They lack 'coolness' to do what apple can do in the consumer market - something I hate as a concept, but concede is a big issue in getting consumer electronics to sell. I originally thought I'd look at Windows Phone again next time my contract's up, but to be honest, I can't see it still being a player in 2 years time.

  12. The Emperor's Invisible Slip is Showing by serutan · · Score: 4, Insightful

    When people use Windows 7 sales numbers to show how successful and popular Windows 7 is, I keep reminding them that the numbers primarily reflect PC sales. Windows 7 just happens to be there. Sales of new cars automatically implies sales of new tires, not that the tires themselves are a hit with consumers. What we're seeing in Windows phone sales is an example of the dismal performance of most Microsoft products when they actually have to compete on an equal footing.

  13. Re:Folks have learned their lesson by Shados · · Score: 3, Interesting

    Thats unfortunately the issue. Microsoft has been going "Try something, if its not a uber success after 2 weeks, drop it, start over with something else". After getting screwed with the Zune (which was a formidable device at the time) in Canada (no music store ever made the light of day, even though they promised over and over and over), the Zune HD virtually not making it out of the states (and got forgotten after its first push), I don't see why Windows 7 Phone (which IS completely awesome btw) would be any different.

    As a .NET dev who knows Silverlight, I could easily go and make stuff for Windows Phone 7. Will I? Lol, I'm not that stupid...