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Will Microsoft Extend Surface Model And Manufacture Windows Phones?

Nerval's Lobster writes "A day after Microsoft unveiled Windows Phone 8, a company executive explained why the company never implemented native code in Windows Phone 7, declined to say whether Windows Phone 7.x would be upgraded beyond version 7.8, and said Microsoft has no plans to acquire an OEM to manufacture smartphones in-house. Of course, in theory that wouldn't stop Microsoft from building its own hardware in-house, similar to what Google did with the Nexus One. In any case, Microsoft's decision to construct its hardware and software in-house for the Surface tablet project has led to some chatter that it could do the same for smartphones."

28 of 118 comments (clear)

  1. Nexus One wasn't in house... by Richard_at_work · · Score: 5, Informative

    HTC designed and manufactured it, Google just rebranded it.

    1. Re:Nexus One wasn't in house... by armv7 · · Score: 3, Insightful

      Yup, Nexus S and Galaxy Nexus were both produced by Samsung. If there in a Microsoft Phone, my bets are on Nokia. They seem to have a rather cosy partnership with Microsoft, considering the integrating of NavTeq maps into WP8 and the $1 billion/yr bribe towards Nokia use Windows Phone exclusively.

    2. Re:Nexus One wasn't in house... by shutdown+-p+now · · Score: 3, Interesting

      Given where Nokia stock is right now, I'd say that an outright buy-out may be more likely than partnership if MS decides to make its own phone hardware.

    3. Re:Nexus One wasn't in house... by Andy+Dodd · · Score: 3, Informative

      None of the Nexus devices are done in-house - Google partners with one of their licensees for each one. To avoid licensees possibly getting angry, they tend to rotate it around. And honestly, Google would likely aggressively market any device a manufacturer makes that is as open as one of their Nexus devices.

      N1 was HTC, NS and GN were Samsung, rumored upcoming tablet is rumored to be Asus

      While the Xoom was not officially a "nexus" it was Google's "Google Experience" tablet device in some regions, adding Motorola to the list

      --
      retrorocket.o not found, launch anyway?
    4. Re:Nexus One wasn't in house... by Tough+Love · · Score: 2

      Given where Nokia stock is right now, I'd say that an outright buy-out may be more likely than partnership...

      I'd be all for that. If Nokia were actually Microsoft instead of just a brain-controlled zombie of Microsoft, I would lose my last shred of guilt about doing my part to drive a stake through its heart.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
  2. It would need to pick up some cheap factories by phonewebcam · · Score: 4, Interesting

    Say in a foreign country well-known for its mobile business which was teetering after having been dealt a big blow by the iPhone. It would need to somehow persuade them to ditch their current production runs and software stacks in favour of their own. It would have to install one of their own men at the top to oversee all this. Then it would have to ensure there is no chance of this business recovering by publicly announcing a new line of software which is totally incompatible with the line it promised to save them with, thus ensuring via the osborne effect none sell at all. Bankrupt, this mobile business could then be picked up for a song, and its patents would really come in handy too. The trouble is, everyone in the business would see this coming if they tried that. Wouldn't they?

    1. Re:It would need to pick up some cheap factories by slinches · · Score: 4, Funny

      Yes, but where in the world would they find such a company?

      --
      Sent from my Nokia N9

      --
      Knowledge Brings Fear
    2. Re:It would need to pick up some cheap factories by PerfectionLost · · Score: 2

      I dunno, wouldn't Blackberry be a better investment...?

    3. Re:It would need to pick up some cheap factories by PickyH3D · · Score: 3, Funny

      While amusing, I thought about this during the WP8 announcement. Prior to WP8, everyone said "Windows Phone 7" during announcements. Everyone except Nokia at their big announcement. They specifically called out "Windows Phone."

      Even more importantly, if they really wanted too, they could keep their WP7 lineup alive for as long as they see fit because they have the ability to make changes. In doing so, they could maintain their faithful customers and continue on with WP8.

  3. They should by bhcompy · · Score: 4, Insightful

    I think a reference model is a good way to go. Works for many hardware vendors that also license their technology out(notably video card vendors, of course), works for showing what Android can do for Google, etc. No frills, no contract, just a piece of hardware that shines at showing what the base software can do without having all that other crap(Beats Audio, Dolby Surround, ginormous screen, etc) tacked on.

  4. May need to at this point by Anonymous Coward · · Score: 5, Insightful

    Given that they've just stiffed OEMs by announcing that literally EVERY unsold phone in the channel is now abandonware, they may NEED to start making their own. Who on earth would want to lose *more* money on phones that almost certainly won't sell?

    1. Re:May need to at this point by roc97007 · · Score: 2

      I had the same thought. Didn't Microsoft commit the Osborne Mistake with this announcement? Or maybe they don't think they need to care?

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    2. Re:May need to at this point by erroneus · · Score: 2

      But but but!!! Nobody ever [lost money / got fired] for going Microsoft.

      Times are changing aren't they?

    3. Re:May need to at this point by Anonymous Coward · · Score: 5, Informative
      In memoriam: Microsoftâ(TM)s previous strategic mobile partners

      ïMicrosoft's new "strategic partnership" with Nokia is not its first. For a decade the software company has courted and consummated relationships with a variety of companies in mobile and telecom. Here are the ones I can remember:

      LG. In February 2009 Microsoft Corp. signed a multiyear agreement for Windows Mobile to be included on devices from LG Electronics Inc. LG would use Windows Mobile as its "primary platform"for smartphones and produce about 50 models running the software.

      What happened? LG made a few Windows Mobile devices but with WinMo uncompetitive, they abandoned the platform and moved to Android losing years of market presence and all their profits.

      Motorola. In September 2003, Motorola and Microsoft announced an alliance. "Starting with the introduction of the new Motorola MPx200 mobile phone with Microsoft Windows Mobile software, the companies will collaborate on a series of Smartphone and Pocket PC wireless devices designed to create a virtual "remote control" for the Web-centric, work-centric, always-on-the-go mobile professional." In addition, the alliance includes cooperation on joint marketing and wireless developer programs.

      What happened? Motorola launched a series of Windows Mobile phones culminating in the Motorola Q "Blackberry killer". As Motorola hit the rocks in profitability new management reached for the Android liferaft. The company now relies exclusively on the Droid franchise.

      Palm. In September 2005 Palm and Microsoft announced a strategic alliance to "accelerate the Smartphone market segment with a new device for mobile professionals and businesses. Palm has licensed the Microsoft Windows Mobile operating system for an expanded line of Treo Smartphones, the first of which will be available on Verizon Wirelessâ(TM) national wireless broadband network."

      What happened? Palm shipped a few Windows Mobile, famously dismissing Appleâ(TM)s potential entry as something "PC guys" could never achieve. A new CEO, a private placement and an acquisition later the company is a division of HP making its own operating system.

      Nortel. When Steve Ballmer was famously laughing at the iPhone and saying that he likes the Windows Mobile strategy "a lot" he was sitting next to the then-CEO of Nortel (Mike Zafirovski formerly of Motorola) with whom the company had just closed a strategic deal. "an alliance between Microsoft and Nortel announced in July 2006 ⦠includes three new joint solutions to dramatically improve business communications by breaking down the barriers between voice, e-mail, instant messaging, multimedia conferencing and other forms of communication".

      What happened? Nortel declared bankruptcy two years later.

      Verizon. In January 2009 "Verizon Wireless has selected Microsoft Corp. to provide portal, local and Internet search as well as mobile advertising services to customers on its devices. The five-year agreement will go into effect in the first half of 2009 when Microsoft Live Search is targeted to be available on new Verizon Wireless feature phones and smartphones." The deal would ensure Bing distribution to all of Verizonâ(TM)s smartphone customers.

      What happened? Bing did ship on some devices but in October 2009 Droid came to Verizon.

      Ericsson. In September 2000, "Ericsson and Microsoft Corp. today launched Ericsson Microsoft Mobile Venture AB. This previously announced joint company will drive the mobile Internet by developing and marketing mobile e-mail solutions for operators. The first solutions are expected to be on the market by the end of the year. The company is part of a broader strategic alliance between Ericsson and Microsoft"

      What happened? Ericsson divested itself of the mobile division forming a joint venture which would go on and make more strategic alliances with Microsoft over Windows Mobile culminating in a loss of profits and eventual flight to Android.

      Sendo. In February

  5. companies don't "make" stuff anymore by Anonymous Coward · · Score: 4, Interesting

    they outsource manufacturing.. and in a lot of cases, even the design and development is outsourced... the "company" that sells whatever it is just slaps their name on it.

    the largest electronics manufacturer in the world does not have a household name (except for when they make the news for employer-employee issues). it sells very few products at retail of its own. they are the lowest bidder that makes products for other companies.

    apple is a software and design house. they outsource manufacturing. they basically exploit the cheap asian labor of foxconn. foxconn and apple have roughly the same gross revenues, but apple's net is over 10 times higher. foxconn has over a million employees while apple 'only' has about 60k. foxconn net revenue per employee is about $2,200.. apple's is over $425,000.

    1. Re:companies don't "make" stuff anymore by UnknownSoldier · · Score: 2

      > the largest electronics manufacturer in the world does not have a household name

      I presume you are talking about Foxconn? (http://en.wikipedia.org/wiki/Foxconn) Ah, thanks for the dollar figures between them and Apple.

      Sad to see how at one time Americans took pride in quality and "Made in America"; now they just wanted the cheapest quantity possible. :-/

      --
      "The Big Bang is our modern scientific creation myth. It comes from the same human need to solve the cosmological riddle [Where did the universe come from?]"
      - Carl Sagan, Cosmos episode 10 "The Edge of Forever"

  6. As a software company... by nomorecwrd · · Score: 3, Insightful

    Microsoft is an excellent hardware manufacturer

    Their keyboards an joysticks are the best (mid-range) hardware I've come across.

    1. Re:As a software company... by spire3661 · · Score: 2

      And the xbox360 is a textbook case of royally screwing the pooch hardware design-wise. It took MULTIPLE revisions to tame the 360 into an acceptable piece of hardware

      --
      Good-bye
    2. Re:As a software company... by erroneus · · Score: 2

      SOP for Microsoft. Version 1 is for early adopters. Version 2 is "kind of okay" Version 3 is "better" and Version 4 is to be avoided like the plague. Version 5 is "we're sorry, let's be more like version 3." Version 6? Often the end of the development line where they either perfected it or screwed it up so bad no one wants it any longer.

  7. Re:None of this matters... by ackthpt · · Score: 2

    This is true. I think Microsoft realizes that they need to have a mobile OS that actually has some demand before they erect a manufacturing operation.

    Part of their strategy is probably around this half tablet, half laptop supposedly driving demand toward the mobile OS - they think people who are largely using Android or iOS will be floored by the Surface, buy one, and then want to replace their other devices so they all work with Windows...?

    Not bloody likely.

    Further, iOS and Android are generations ahead of Microsoft -- they're settling down, with comfortably large app bases. Microsoft owners will have to go through all that terrain and waiting to see what works well and not well and what gets improved by MS, the same company which can take MONTHS to issue patches to known exploits. MS has to be far more quick to upgrade, patch and address issues because they're alreay starting at least two years behind, if not more.

    As for an owner, you'll be attracted if the price is right (read: CHEAP), otherwise you'd much rather be using what everyone else is. Microsoft missed the boat and it'll be having a hell of a time attracting any real customer base. It's effectively the Zune all over again.

    --

    A feeling of having made the same mistake before: Deja Foobar
  8. Re:yes by ackthpt · · Score: 3, Funny

    Don't see why not. The dev tools are the same, the OS at least at the app layer is identical or nearly so. Assuming people like Surface I'm sure a Surface Phone version wouldn't be that hard to fire out.

    And with enough mortar you could build a house out of them.

    --

    A feeling of having made the same mistake before: Deja Foobar
  9. Can't wait for the foldout keyboard and stylus by Moof123 · · Score: 2

    Or Clippy Mobile as a competitor for Siri.

  10. Re:None of this matters... by symbolset · · Score: 2

    Decent tablets are starting to appear at about $100. Before this appears a nice 7" quad core tablet will be $200. An actual iPad starts at $350. I just don't see it priced to appeal to Windows users. And the pro? No way.

    --
    Help stamp out iliturcy.
  11. Re:Hardware makes competition by Johann+Lau · · Score: 3, Funny

    questionable PC manufacturers who have caused a lot of Microsoft's brand to decay over the years

    Haha :)

    Oh wait, you're serious... AHAHAHAHAHAHAHAHAHAHAHAHA!!!!!

  12. Sounds like the Final Knife in Nokias back. by guidryp · · Score: 2

    There seems to be one thing worse than being Microsoft's enemy. That is being their partner.

    1: Elop takes over, and Osbournes them by announcing the switch to Windows Phone with no Windows Phone actually coming anytime soon.
    2: Microsoft announces that Win8 will have a new Kernel and that currently for sale phones (Nokia Phones) won't be upgrading to new kernel, thus killing desire for current Nokia phones.
    3: Microsoft starts making it's own Windows phones.

    Step 3 is hypothetical at this point, but looks like it might be enough to kill already weakened Nokia.

  13. Microsoft adaptation of Ghandi quote by Tough+Love · · Score: 2

    "First they laugh at you. Then you fail. Then they laugh at you again."

    --
    When all you have is a hammer, every problem starts to look like a thumb.
  14. Re:None of this matters... by Teckla · · Score: 3, Interesting

    because no one will buy them anyway.

    I'm not sure this is true.

    I'm not a fan of Microsoft, having watched their bad behavior over the decades. However, one thing I've noticed is that they are very stubborn. They will keep trying, and trying, and trying, and trying, in some markets, until they succeed. Also, they can throw massive resources at a problem for a very long period of time, until it succeeds, thanks to their Windows and Office cash cows. And those cash cows are still delivering the milk. Big time.

    Also, I've typically been pretty confident about Google, but when it comes to Android, I'm not so sure anymore. Google is allowing the carriers to run amok with Android, giving Android a bad name. The fragmentation is a real problem. The OS updates (or lack thereof) to existing phones is a real problem. The carriers mangling the experience is a real problem. The spotty support for this feature or that feature is a real problem.

    The crappy Android devices are a real problem, too. (I'm not saying they're all crappy, but a lot of them are.) Sure, having several price points is great, but it only takes one bad experience with a crappy Android phone to push someone to iPhone... or maybe, just maybe, a Windows Phone.

    If Microsoft can avoid these problems plaguing Android devices, they might manage to get a foothold. And then gain a little market share. And a little more, and a little more. And then, oops, all of a sudden, Microsoft is a real contender in smartphones.

    Again, I'm no Microsoft lover. Their anti-competitive practices in the past has left me cold. The fact that every time they dominate some niche, they usually stop innovating, has left me cold. The way they break up products into far too many versions has left me cold. Their nickle-and-dime dance has left me cold.

    But there are plenty of examples of Microsoft not giving up, trying again and again, until they get it right (or close enough to right) and become a serious player in an area where they used to be a laughing stock.

    Predictions of Microsoft's failure in smartphones is a never-ending echo right now, but if Google keeps stumbling with Android, there may be room for another competitor. Especially with how fickle consumers are. If they are replacing their smartphones every 2-3 years anyway, they might decide it's not such a big deal to try out a Windows Phone for a couple of years... and they might end up sticking with it.

  15. Re:None of this matters... by ozmanjusri · · Score: 2

    Android needs to support standard X applications so the whole code base such as LibreOffice works on Android, allowing it to function effectively as a laptop replacement

    It looks like they're heading down a different path and trying to get the app stack running on Android. Buying QuickOffice suggests they won't be pushing too hard to get Libre on there. http://googleblog.blogspot.com.au/2012/06/google-quickoffice-get-more-done.html.

    There's already third party X11 servers, so they may appear on the open source versions of Android soon, if there's enough demand.

    https://play.google.com/store/apps/details?id=com.theqvd.android.x&hl=en

    http://my20percent.wordpress.com/2012/02/27/android-x-server/

    --
    "I've got more toys than Teruhisa Kitahara."