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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."

7 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.

  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?

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      Knowledge Brings Fear
  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 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.