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Microsoft Surrenders to iOS and Android, Moves Focus to Budget, Flagship and Business Phones

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The company can’t compete with the two biggest OS’ in town

Microsoft is officially throwing in the towel – the company has announced mass layoffs in its hardware division that includes around 7,800 employees in its phone business. The layoffs are in line with the company’s “fundamental restructuring”, according to Microsoft CEO Satya Nadella. Microsoft is apparently moving away from “a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family.”

Microsoft is now looking to restructure its phone business, and is moving away from competing with iOS and Android in the mass market, and are now refocusing on three major customer categories: the value segment (read: entry level), high-end market (flagship phones) and surprisingly, business customers. From the wording of Nadella’s memo – “we’ll bring business customers the best management, security and productivity experiences they need” – it looks like Microsoft is looking to compete with BlackBerry in providing businesses – secure, productivity-minded smartphones, but obviously this is just speculation on our part.

Source

 

John Nieves

John is a veteran technology and gadget journalist with more than 10 years of experience both in print and online. When not writing about technology, he frequently gets lost in the boonies playing soldier.

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13 Comments

  1. Misleading title. Porke magfofocus sila on 3 segment (instead of releasing numerous phone models) nag surrender na agad?

    1. Mass-lay off na nga eh, ibig sabihin, walang ng tumatangkilik sa mga phones nila, ampanget naman kasi ng UI diosko, at huli pa sa App support….they’re pretty much dead in the water with absolutely no room for progress, kung hindi pa sila patay ngayon, soon to be, nowhere to go but down

      1. Mass lay off kasi nga di na sila mgpoproduce ng maraming phone models. Mas magfofocus dn sila sa pkkipagpartner sa other phone brands

  2. Very misleading, I opened the source, just one thing, restructuring is not equal to moving away from the competition, much more of surrendering. They’re restructuring to compete with Android and iOS.

  3. Yeah very misleading article, they did not mentioned that they’re surrendering. They are restructuring to better compete and position them selves on the saturated market.

    1. its not misleading…

      “The fact that Nadella chose the word “devices” as opposed to “smartphones” suggests to me that Windows Phone is on the way out, and that Microsoft could be getting ready to exit the market in the next few years. Devices that are currently in the pipeline will be brought to market, at which the fans will say “see, Microsoft isn’t ditching smartphones,” and then a year or two down the line, we’ll notice that there are no new Windows Phone devices coming out, and that will close the Windows Phone chapter with the least fuss possible.

      And that’s a real shame, because Windows 10 is Microsoft’s best mobile platform. But burning massive piles of R&D cash on making handsets for a user base of a few million doesn’t make sense.” -Adrian Kingsley-Hughes

  4. did the layoff memo start with “hello there”? lol

    but seriously, they said they’re exiting unprofitable markets. ano kayang mangyayari sa lumia philippines since they just started rebranding their stores here?

  5. “and are now refocusing on three major customer categories: the value segment (read: entry level), high-end market (flagship phones) and surprisingly, business customers.”

    Really? Looks like business as usual to me.

    Entry level major competitor: Android
    High-end market major competitors: Android and iOS
    Business customers: major competitors: Blackberry, Android(?) and iOS(?)

  6. Iwan na iwan naman tlga sila sa Market ng
    Smartphones, sa US lang madami mismo silang market consumer.

    Tapos ngayon sila naman ni Blackberry na napag iwanan nadin ng panahon ang magtutuos.

    Sabay comeback naman Nokia na papasok sa ring with new branding para sa Android.

    1. Iwan na iwan naman tlga sila sa Market ng
      Smartphones, sa US lang madami mismo silang market consumer.

      Tapos ngayon sila naman ni Blackberry na napag iwanan nadin ng panahon ang magtutuos para sa Business consumers and marketing.

      Sabay comeback naman Nokia na papasok sa ring with new branding para sa Android.

  7. Unbox, seriously? If every company that restructured automatically meant that they were surrendering we wouldn’t have a Fortune 500 list. Not even a Fortune 50. We wouldn’t have comeback stories on the NYSE all the time either.

    If anything all this means is that they are throwing off the useless baggage to get in a better position to compete in a more targeted manner, instead of the somewhat amorphous set of goals they had before.

  8. I am using both Android (Mi3) and Windows Phone (Lumia 1020). I like my lumia phone it’s fast and the camera is still one of the best. However, the app catalog falls way behind compared to iOS and Android and I guess that’s the fall of the Windows Phone platform.

  9. Wawa naman mga bumili ng Windows Phone. That’s what you get for jumping onto a sinking ship. alam na ngang bottom feeder OS susuportahan pa hahaha!

    $7.2 billion bili nila sa Nokia and they’re writing off a similar amount, if I understand it correctly? so doble na nawala sa kanila?

    Your beloved, mostly western, mega corporations are stumbling one by one. Research in Motion, Nokia, Motorola, Sony, Qualcomm and now Microsoft. Samsung is hot on the trail of Intel. Care to wager who goes next? Lelz

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