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Microsoft-Built Smartphone Could Irritate Hardware Partners, Harm Nokia

Nerval's Lobster writes "Rumors have circulated for weeks that Microsoft intends to release a smartphone of its own design and manufacture, embracing the strategy that drove Apple's iPhone to such enormous success over the past few years. While releasing a branded smartphone offers several potential benefits—look at the revenue and brand recognition Apple's earned as a result of the iPhone—such a strategy also carries significant risks for Microsoft. First, it could alienate smartphone partners such as Nokia, which would find itself competing against a high-end device backed by Microsoft's sizable marketing dollars. (Given the Finnish phone-maker's already perilous situation, that could prove ruinous.) But a branded smartphone could also convince hardware manufacturers that Microsoft really is 'all in' on building its own devices, which could lead to all sorts of drama."

30 of 100 comments (clear)

  1. I can see it now ... by jasnw · · Score: 5, Funny

    ... from the folks who brought you the Zune ... THE ZONE!

    1. Re:I can see it now ... by antek9 · · Score: 4, Funny

      You all too happily forget that Microsoft already had their own line of phones (yah, well, sorta...), the Kin! In order to re-invigorate that great tradition of (iirc) two weeks, the new MS phone should carry that name on to the future. May I suggest the KIN-KON, the DUN-KIN, and last but not least, the pumped up eight core cpu version, the PUMP-KIN (available in one color, and one color only).

      --
      A World in a Grain of Sand / Heaven in a Wild Flower,
      Infinity in the Palm of your Hand / And Eternity in an Hour.
    2. Re:I can see it now ... by davester666 · · Score: 4, Insightful

      that virtually nobody bought because it was years late to the party.

      Hmm, are there any parallels to the current situation?

      --
      Sleep your way to a whiter smile...date a dentist!
  2. So... just like Google? by MrEricSir · · Score: 2

    Last I checked you could buy an Android phone from Google (i.e. the Nexus phones) or from a 3rd party company.

    How is this any different?

    --
    There's no -1 for "I don't get it."
    1. Re:So... just like Google? by Anonymous Coward · · Score: 5, Informative

              Nexus One smartphone, manufactured by HTC, released January 2010
              Nexus S smartphone, manufactured by Samsung, released December 2010
              Galaxy Nexus smartphone, manufactured by Samsung, released in November 2011
              Nexus 7 tablet, manufactured by Asus, released July 2012
              Nexus Q, a media-streaming entertainment device, released June 2012
              Nexus 4 smartphone, manufactured by LG, released November 2012
              Nexus 10 tablet, manufactured by Samsung, released November 2012

      that different

    2. Re:So... just like Google? by Kenja · · Score: 4, Insightful

      Difference is that Android phones can actually differentiate themselves. Microsoft phones have very little latitude in hardware design, so there is next to no difference between phone A and phone B. So an Android phone Google is not going to be much like a Samsung Galaxy Note III, but a Microsoft phone will be a lot like a Nokia.

      --

      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    3. Re:So... just like Google? by Threni · · Score: 5, Interesting

      Yeah, it's kind of funny that Nokia didn't want to be just another Android phone manufacturer, but now they've become just another Microsoft phone manufacturer.

      Still, I'm sure Elop is just the man to get Nokia out of this sticky situation. Perhaps Microsoft will give him his old job back, once the job's been done....sorry, I mean once Nokia is beyond economic repair.

    4. Re:So... just like Google? by SerpentMage · · Score: 4, Insightful

      This is not even a joke. Have you seen the new (cough) clone (cough) from HTC. If I were Nokia I would be furious. And there is Microsof thinking, "oh gee lets help HTC because Nokia is effing this up." No Nokia is not effing this up! Nokia is building kick ass phones. It is Microsoft that is screwing things up. The upgrade path from Windows Phone 7 and Windows 8 was pure and unadulterated Microsoft eff up! When I heard about this I thought, "wow and we thought Android vendors had a sucky upgrade path."

      --

      "You can't make a race horse of a pig"
      "No," said Samuel, "but you can make very fast pig"
    5. Re:So... just like Google? by 21mhz · · Score: 2

      Difference is that Android phones can actually differentiate themselves. Microsoft phones have very little latitude in hardware design, so there is next to no difference between phone A and phone B.

      A Lumia 920 says "bullshit" to that.

      --
      My exception safety is -fno-exceptions.
    6. Re:So... just like Google? by BBF_BBF · · Score: 3, Interesting

      Microsoft phones have very little latitude in hardware design, so there is next to no difference between phone A and phone B. So an Android phone Google is not going to be much like a Samsung Galaxy Note III, but a Microsoft phone will be a lot like a Nokia.

      Actually Windows Phones have very little lattitude in minimum and maximum tech specs of screens, no variation on number of hard buttons, nor processors. There are minimum memory requirements as well. Hardware in terms of style, is purely up to the manufacturer.

      However, I think that the fear is that Microsoft will put out a phone with a *more powerful* processor and/or a *higher resolution* display than they allow the other Windows Phone licensees to, thus ensuring that no OEM can match Microsoft's top-of-the-line phone.

    7. Re:So... just like Google? by occasional_dabbler · · Score: 2

      Each manufacturer has its own walled garden on the MSFT app store. This gives some differentiation between otherwise identical software. In the case of Nokia their exclusive apps are the turn by turn satnav app 'Drive', the public transport app 'Transport' and the AR app 'City Lens' (amongst several other less notable offerings). Any one of these would be a reason to go for Nokia over HTC, Samsung or even MSFT and this is the reason I am putting up with their stupid decision to go exclusive with EE and waiting until the new year to get a 920 off-contract.

      --
      "Our opponent is an alien starship packed with atomic bombs," I said. "we have a protractor"
    8. Re:So... just like Google? by 21mhz · · Score: 2

      Please elaborate. What Windows 8 phones does Lumia 920 differentiate itself from?

      Any that don't have optical image stabilization in the camera, the touchscreen usable with gloves on, decent screen visibility in direct sunlight, sub-10ms screen reaction times, wireless charging, ability to withstand accidental drops from human-sized heights without a case, and Nokia exclusive apps. It's actually differentiation overkill: Lumia 920 has distinct features over any smartphone available on the market, no matter what the OS.

      --
      My exception safety is -fno-exceptions.
    9. Re:So... just like Google? by kurkosdr · · Score: 2

      Exactly. The difference is that in the case of the Nexuses, the OEM keeps most profits, so Google acts as a subcontractor to them. OEMs like that. Instead, MS got Apple-envy and is trying to compete with their OEMs. Also, MS has the advantage that they "pay royalties to themselves" for the OS royalties of the Surface, so other OEMs are in a competitive disadvantage. Especially if the rumors of 60$ royalties for Windows RT are true. Is it any wonder that most OEMs are jumping ship from Windows RT? Same thing will happen with Windows Phone.

  3. Microsoft would have great economies... by msauve · · Score: 4, Funny

    they wouldn't have to pay for full color RGB displays, since a blue screen would be good enough.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
  4. BB10 looks uncertain by nurb432 · · Score: 2, Insightful

    No, it looks quite certain... to fail.

    --
    ---- Booth was a patriot ----
  5. Nokia has been bled dry by tuppe666 · · Score: 4, Insightful

    Microsoft have already walked away from Nokia, and threw them under the bus with Windows 8, they are making no pretence that Nokia are old news, and if anything are flirtying with HTC. The fact that they will abandon both [I don't think Samsung will lose any sleep] is sadly predictable. LG is profitable again after dumping windows and moving to Android exclusively, maybe they learnt something :).

    What is terrifying is Nokia ignoring the original stupidity of choosing windows...exclusively seem to have no back up plan, and are acting like they have no option. They have cut too many people, and moved manufacturing to china, and seem to be moving into the Patent trolling with Microsoft...but nothing else.

    Looks like Android is going to grab even more market share before this sorry tale is over.

  6. Re:I understand! by thePowerOfGrayskull · · Score: 2

    Also:

    Conclusion: Building its own Windows Phone smartphone might prove beneficial for Microsoft’s bottom line and prestige, but it could negatively affect its current partnerships.

    Gee, nobody has said anything like that before - some truly original stuff here!

  7. Re:Suck to be Nokia but good for rest of us by tuppe666 · · Score: 3, Insightful

    While it may be a net loss for Nokia (they have no one but themselves to blame), it will be good for consumers. Consumers need a third ecosystem, especially since WebOS is dead and BB10 looks uncertain. From what I have read, it seems like Microsoft might try out Chinese market first before launching in USA

    That is the bingo word of the month "Ecosystem"; Windows do not have an ecosystem, and customers do not need one. They need compatibility and standards so their devices work with each other, but not an ecosystem. Ecosystem is just a bullshit word introduced by Microsoft shills because of the massive failure of Microsoft mobile, and are trying to utilise their desktop monopoly where it is of no value.

    Oh and FYI Windows Phone still is fifth https://www.idc.com/getdoc.jsp?containerId=prUS23771812 behind Symbian and RIM. With no indication that the market wants of desires a player outside iOS and Android. The sad fact is Microsoft is a failure in Chinese market, as well as everywhere else. The figures are in Nokia's quarterly reports, but an overall market share of 2% says it all.

  8. Starcraft anyone? by Baby+Duck · · Score: 2

    I first read that headline as ... Smartphone Could IRRADIATE Hardware Partners ... Technically, they already do, but I figured some additional orders of magnitude were thrown in with a headline like that!

    --

    "Love heals scars love left." -- Henry Rollins

  9. Re:Apple's strategy by tuppe666 · · Score: 4, Insightful

    Was/is to make good products. So microsoft is going to do a 180 now?

    No its really not. Apples [during Jobs] greatest success comes from getting users to spent money on high margin electronics; by being seen as first to market; with a compelling product, and marketing the hell out of it. Following apple into a mature market with a me too product is well the what Apple [post jobs] did with the iPad mini, only Microsoft doesn't have the same set of devoted followers, and those it neglected in the pursuit of being an electronics company.

  10. Hard rice by mspohr · · Score: 4, Insightful

    Interesting comment from Taiwan maker Acer about Microsoft's going into hardware competition:
    http://news.cnet.com/8301-10805_3-57545024-75/acer-warns-microsoft-that-hardware-is-like-hard-rice/

    I like the phrase they used: "like eating hard rice"

    Clearly, the hardware manufacturers who have been subservient to Microsoft are looking at a new reality and will have to decide what to support.
    This may give them the motivation to move to Android for phones and tablets and ignore Microsoft's offerings.

    --
    I don't read your sig. Why are you reading mine?
  11. Except for the X Box by future+assassin · · Score: 2

    what other hardware has MS been successful with. None that I know off. They came in with XBox just in time to catch the Dreamcasts death now the the iPhone and Android juggernauts its not going to happen. Plus MS hardware seems to have the mom and dad in sweat pants image instead of the cool kid on the block.

    --
    by TheSpoom (715771) Uncaring Linux user here. I have nothing to add to this but please continue. *munches popcorn*
  12. Will they re-use the Kin brand? by kroyd · · Score: 4, Informative
    I'm sure lots of people here remembers the previous Microsoft produced phone, the Microsoft Kin series of phones. After all, they lasted all, oh, 4 weeks? 40 days? Something like that.

    There is probably a lot of "slack" in the Windows 8 phone pricing as well - if the Windows RT "OEM license fee" is 80-95$, the Phone OS OEM price can't be far off. I'm sure Nokia, HTC and Samsung won't mind if they've got to add an extra 80$ in cost for each phone they produce which Microsoft doesn't have to worry about..

  13. Re:Apple's strategy by toopok4k3 · · Score: 2

    This is blatantly wrong. iPhone was the device that lacked a lot of HW capabilities compared to other manufacturers. The brilliance of iPhone was in the fact that these HW capabilities stopped mattering. Why? Because everyone could build a mobile phone with a camera, GPS, fm radio, wifi, mobile hotspot, etc... Apple focused on software. They got it right with a lot easier to use touchscreen. Their APIs were also miles ahead of the competitors offerings in the ease of use apartment. You propably don't know how PITA it was to do any kind of development on Symbian. Back then it was all symbian. Android was just coming.

    All the necessary "smartphone" hardware existed before the iPhone. However they became a commodity for every phone manufacturer. Apple came to the market with the best software platform. Before the iPhone the focus was on hardware. When was the last time you saw NEW hardware in a phone that ain't just a spec update?

  14. History Repeats by donweel · · Score: 2

    It's not like they have not done it before. They built OS2 for IBM then did a 180 and made a competing product in parallel called windows. The then turned their back on IBM when they where in a position to do so. OS2 was reduced to a cult following.

    --
    Many a long talk since then I have had with the man in the moon; he had my confidence on the voyage. Joshua Slocum
  15. Simple solution: MS buy Nokia by maroberts · · Score: 2

    Nokia can probably be had for relative peanuts now that their trojan Elop has done his best to [strike]wreck[/strike] stabilize the company, and that will also give them access to all the cross licensing agreements that are present in the telecoms market. As a bonus, I don't think Nokia have got into many lawsuits...

    --

    Donte Alistair Anderson Roberts - hi son!
    Karma: Chameleon

  16. Seriously? by Tom · · Score: 3, Interesting

    Microsoft fucks over partner. News at... Seriously? If this comes unexpected to you, you must have joined /. - or, indeed, this plant - very recently. If I recall correctly, ever since Nokia got put in chains, the question asked here was not if, but when this would happen.

    Lesson: If you get in bed with Microsoft, you are a whore. And whores get screwed.

    --
    Assorted stuff I do sometimes: Lemuria.org
    1. Re:Seriously? by Rogerborg · · Score: 3, Insightful

      3-digit UID speaks the truth. Microsoft doesn't have "partners", they have marks, victims and rivals. If they put their arm round your back, its only because they have a knife in it.

      --
      If you were blocking sigs, you wouldn't have to read this.
  17. Re:Other Manufacturers Can't Complain by high_rolla · · Score: 2

    At the moment I would say that point is quite valid. How long that holds could be an interesting question however. I think Ballmer is going nowhere but Sinofsky is different. I think his style and approach have real potential and he's starting to find his stride. Give it a few years and I think he is going to be responsible for some big turn arounds in terms of what MS produces and we are just starting to see the inflection point.

    Now I'm actually a Linux and Apple fan myself and normally don't think much of MS but Sinofsky is someone I respect.

    --
    Ryans Tutorials - A collection of technology tutorials.
  18. Re:Suck to be Nokia but good for rest of us by Bongo · · Score: 2

    Ecosystems... there's the people who are looking for distributed computing (apps, clouds, integration, media, etc.)
    Then there's people who basically want a gadget that takes photos, does Facebook, and a few games.

    Both types of customers seem to do well with Apple, so it is hard to say which is biggest. Apple has an ecosystem, but does it matter in the long run? The Apple Store is just too packed for me to believe they are all computing heads wanting to sync their calendars and note collections.

    Android I daresay has a larger proportion of gadget customers. As well as those who care so much about computing they refuse to use Apple. But we kinda know they're in the minority. All those millions of activations aren't Jim preaching open source.

    I think Xerox got it right again and the next generation is distributed computing. Whether tablets today are enough for that (or whether it needs much more stuff to go digital, paperless office, etc.) is whether ecosystems at this point matter. Basically, is the iPad a platform or a gadget for most buyers?

    If the distributed computing wave hasn't actually started yet then Microsoft are not late. But they may lose anyway on a gadget basis.

    But if distributed computing has arrived, then iOS may grow a lot more, and Android might sink into mere gadget status. But that's OK too because a lot of the world will be powered by people who just need phone and email and web to do business, like Africa. People who'll never own a PC of any description. Just like I never owned a mainframe or a mini.

    I tend to feel that the third ecosystem will come from China or India. There's nothing different about Microsoft at this point, but another nation (and the Chinese see themselves not as a nation but a civilisation) would build their own.