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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."

12 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. 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
  3. 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

  4. 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?"
  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: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.

  7. 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.

  8. 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?
  9. 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"
  10. 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..