Microsoft’s Windows Phone, now known as Windows 10 Mobile, has always suffered from poor consumer demand and a lack of high-quality popular apps. The new operating system has failed to help the situation as demand has continued falling.
Microsoft failed to reach its expected earnings last week as sales of its Lumia handsets continued to decline, shifting just 2.3 million units in the past three months. The figure, down 73 percent from the same period last year, adds substance to the “Windows Phone is dead” argument as the platform appears to be falling to the ground completely.
Microsoft is still trying to maintain momentum for Windows 10 Mobile though. In a company email from Terry Myerson, Executive Vice President of the Windows and Devices Group, Microsoft categorically states its commitment to Windows on smartphones despite its lack of market share.
The message is addressed to Microsoft partners and executives and was obtained by Windows Central. The site was able to verify the authenticity of the email in which Myerson wrote “Let me be very clear: We are committed to deliver Windows 10 on mobile devices with small screen running ARM processors.”
The note continues: “We are currently in development of our next generation products and I wanted to reconfirm our commitment to Windows 10 Mobile. We believe in this product’s value to business customers and it is our intention to support the Windows 10 Mobile platform for many years.”
The email directly addresses the concerns of consumers, the media and Microsoft’s retail partners, many of whom have expressed doubts whether Windows 10 Mobile has a future at all. Myerson makes an important point in the email though, specifically referencing business customers above other kinds of user.
Microsoft has refocused Windows 10 Mobile. CEO Satya Nadella has previously outlined how it is now interested only in businesses, professionals and the company’s own fans. Windows 10 Mobile is no longer aimed at general consumers, instead targeting the small but significant groups who value the presence of Windows on phones.
Microsoft is continuing to develop the platform because it has a foothold in the use scenarios that are most important to the company. In the future, it may begin to reconsider its approach to consumer-oriented handsets with more budget and mid-range devices.
Microsoft is expected to focus more fully on Windows 10 Mobile later this year going into 2017. It is known to be working on a new premium smartphone, likely branded as Surface rather Lumia, for launch in the future. The device is thought to be positioned as a productivity powerhouse for businesses and professionals.
Even with the “Surface Phone,” Microsoft has a monolithic challenge ahead of it for its phones business. If it is to successfully challenge Apple and Google, it will need to launch something that disrupts the entire industry, similarly to how it managed to come to dominate professional tablets with its Surface line of convertible PCs. The company may be committed but that alone isn’t going to save Windows 10 Mobile.
