Why The Windows Phone Failed
Summary
TLDRThe video script recounts Microsoft's missteps in the smartphone market, beginning with their skepticism towards the iPhone in 2006. It details the company's initial confidence in Windows Mobile, the subsequent rise of iOS and Android, and Microsoft's delayed response with Windows Phone 7. The partnership with Nokia and the eventual acquisition of their smartphone business are highlighted, culminating in the failure of Windows 10 Mobile. The script underscores the importance of timely innovation and integration of hardware and software in the competitive smartphone industry.
Takeaways
- π± In 2006, Microsoft dominated the smartphone market with their Windows Mobile platform, but failed to anticipate the iPhone's impact and potential success.
- π€ Microsoft's initial skepticism towards the iPhone was based on its high price and lack of a physical keyboard, which they believed were crucial for business customers.
- π Steve Balmer, then Microsoft CEO, dismissed the iPhone's potential, considering it too expensive and not suitable for business use, reflecting a broader industry underestimation.
- π Microsoft's denial of the iPhone's potential led to a significant strategic misstep, as they continued to focus on Windows Mobile devices rather than innovating to compete with the new touch interface trend.
- π Apple's focus on convenience and user experience with the iPhone proved to be more valuable to customers than the technical specifications that competitors emphasized.
- π The iPhone quickly gained market share, surpassing expectations and becoming a major player in the smartphone industry, outpacing companies like Palm and Microsoft.
- π The introduction of Android by Google provided another major competitor in the smartphone market, further challenging Microsoft's position.
- π Microsoft's delayed response and reliance on outdated strategies led to a significant decline in their market share as they failed to keep up with the rapidly evolving industry.
- π€ Microsoft's partnership with Nokia was an attempt to revitalize their smartphone efforts, combining forces to create new mobile products.
- π Despite some positive reception, the Windows Phone platform struggled with app ecosystem limitations and compatibility issues, alienating both developers and users.
- π Microsoft's acquisition of Nokia's smartphone business and subsequent releases like the Lumia 950 failed to gain significant market traction, ultimately leading to the discontinuation of their smartphone efforts.
Q & A
Which company dominated the smartphone market in 2006, just before the release of the iPhone?
-Microsoft dominated the smartphone market in 2006 with their Windows Mobile platform.
What was the initial reaction of Steve Ballmer, then CEO of Microsoft, to the iPhone's introduction?
-Steve Ballmer dismissed the iPhone, stating it was too expensive and lacked a keyboard, which he believed was essential for business customers and email functionality.
Why did some people, including companies, initially doubt the iPhone's potential success?
-Some people doubted the iPhone's success due to its high price, lack of a physical keyboard, and the fact that it had similar functionalities to other smartphones at the time but at a much higher cost.
What was Apple's goal for iPhone sales in 2008?
-Apple's goal was to capture 1% of the worldwide market share in 2008, which meant selling 10 million iPhones.
How did the introduction of Android by Google impact the smartphone industry?
-The introduction of Android provided a new mobile operating system designed for touchscreen smartphones, offering an alternative to iOS and giving other manufacturers the opportunity to compete in the touchscreen smartphone market.
What was the significance of the iPhone 3G in terms of its price and international release?
-The iPhone 3G was significant because it was the first model released internationally and was more affordable than the original iPhone, starting at just $199, making it accessible to a larger customer base.
Why did Microsoft struggle to gain traction with their Windows Phone 7 operating system?
-Microsoft struggled because they were late to the modern smartphone OS market, had an underdeveloped app ecosystem, and faced competition from established platforms like Android and iOS. Additionally, they had issues with carrier support and hardware limitations.
What was the Nokia Lumia 800, and why was it considered a significant product for Nokia and Microsoft?
-The Nokia Lumia 800 was a smartphone that essentially ran Windows Phone 7 and was considered significant as it represented the strategic partnership between Nokia and Microsoft, aiming to combine assets to develop innovative mobile products.
Why did Microsoft's acquisition of Nokia's smartphone business ultimately fail to revive their position in the smartphone market?
-The acquisition failed to revive their position due to continued issues with app ecosystem development, an inconsistent and buggy operating system, and the strong competition from entrenched players like Apple and Android devices.
What was the final decision Microsoft made regarding their smartphone hardware business, and what did Steve Ballmer admit about their strategy?
-Microsoft decided to no longer sell or manufacture new Windows 10 mobile devices, effectively ending their smartphone hardware business. Steve Ballmer admitted that Microsoft would have had a stronger position in the phone market if they had integrated hardware and software sooner.
Outlines
π± Microsoft's Misstep in the Smartphone Market
In 2006, Microsoft, with its Windows Mobile platform, was the smartphone market leader. The unveiling of the iPhone was met with skepticism, especially by Microsoft CEO Steve Ballmer, who dismissed its high price and lack of keyboard as significant drawbacks. However, the focus on convenience and user experience, which were initially underestimated, proved to be crucial. Microsoft's initial denial of the iPhone's potential success and their continued development of Windows Mobile devices with physical keyboards became their first big mistake, as they failed to adapt to the new direction of the industry, which prioritized touch interfaces and user experience over traditional business-oriented features.
π The Rise of Android and Microsoft's Delayed Response
Google's introduction of Android in 2007, a mobile OS designed for touchscreen smartphones, marked a strategic move to capitalize on the emerging market shift. Microsoft, however, continued to focus on business customers and physical keyboards, missing the opportunity to lead the smartphone revolution. The release of the iPhone 3G in 2008 further solidified Apple's position, while the first Android device, the HTC Dream, also hit the market that year. Microsoft's strategy remained stagnant, and their market share began to shrink as they failed to recognize the importance of a unified hardware and software approach, which Apple had already mastered.
π Microsoft's Struggle to Compete with iOS and Android
Microsoft's late entry into the modern smartphone OS market with Windows Phone 7 in 2010 was met with a positive initial response due to its innovative Metro interface and improved user experience. However, the platform suffered from a lack of app availability and a disjointed strategy that failed to convince carriers and manufacturers to adopt Windows Phone over Android and iOS. The high licensing fee for Windows Phone and the absence of popular apps like Instagram and YouTube further hindered its adoption. Microsoft's struggle to compete was evident in the market share statistics, with Apple and Android dominating while Microsoft's share plummeted.
π€ Microsoft and Nokia: A Partnership in Decline
In an attempt to accelerate their smartphone strategy, Microsoft partnered with Nokia in 2011, aiming to combine their assets and develop innovative mobile products. The Nokia Lumia 800, released in 2011, was well-received for its design and features but was not available in the US market due to disagreements over 4G LTE support. The partnership faced challenges as the smartphone market had already matured, with customers firmly choosing sides between iPhone and Android. The Lumia 900, despite positive reviews, could not overcome the flaws in Microsoft's operating system, which failed to provide a smooth upgrade path for existing users and lacked a compelling app ecosystem.
π The Downfall of Microsoft's Smartphone Ambitions
Microsoft's acquisition of Nokia's smartphone business in 2013 marked a desperate attempt to regain market share, but it was too late. The release of the Microsoft Lumia 950 in 2015, running Windows 10 Mobile, was criticized for its downgraded design and underdeveloped app ecosystem. The decision to not allow upgrades from previous Windows Phone versions to Windows Phone 8 and later Windows 10 Mobile alienated loyal customers and developers. By 2016, Microsoft's market share had dropped to 0.4%, and in 2017, they announced the end of their smartphone hardware efforts, signaling the failure of their smartphone strategy.
Mindmap
Keywords
π‘Smartphone Market
π‘Windows Mobile
π‘iPhone
π‘Steve Ballmer
π‘User Experience
π‘Market Share
π‘Android
π‘Nokia
π‘Lumia
π‘Windows Phone 7
π‘Market Strategy
Highlights
In 2006, Microsoft dominated the smartphone market with their Windows mobile platform.
Many expected Microsoft to compete aggressively with Apple's iPhone after its 2007 reveal, but they didn't.
Steve Balmer, then Microsoft CEO, dismissed the iPhone as too expensive and not appealing to business customers due to its lack of a physical keyboard.
The iPhone's initial price of $499 was significantly higher than the average $200 smartphone, causing skepticism about its success.
Apple's focus on user experience and convenience with the iPhone was a key differentiator, similar to their earlier success with graphical interfaces in computers.
Apple set a goal to capture 1% of the worldwide mobile phone market by selling 10 million iPhones by 2008.
By June 2008, Apple announced they had sold 6 million iPhones, on track to meet their market share goal.
In 2007, Google introduced Android, recognizing the shift towards touchscreen smartphones.
In 2008, Apple launched the iPhone 3G at a much more affordable $199 price point.
By 2009, Windows mobile's market share had shrunk from 14% to 9%, while iPhone and Android gained ground.
Microsoft introduced Windows Phone 7 in 2010, which was well-received but criticized for its lack of security features and business focus.
Microsoft's strategic partnership with Nokia in 2011 aimed to boost their smartphone presence by using Windows Phone 7 as Nokia's primary OS.
The Nokia Lumia 900, launched in 2012, received positive reviews but struggled against established iPhone and Android devices.
Windows Phone 7 users were unable to upgrade to Windows Phone 8, causing frustration among customers.
By 2016, Microsoft's smartphone market share had plummeted to 0.4%, leading to their exit from the market.
Transcripts
in 2006 just one year before iPhone the
company that dominated the smartphone
market was Microsoft with their Windows
mobile platform so naturally when iPhone
was revealed many expected Microsoft to
compete with apple aggressively and
protect their Market position but what
turned out to happen was one of the
biggest missteps in modern tech
[Music]
history when iPhone was originally
revealed many people were impressed by
its new technologies but there was also
a substantial amount of what you might
call haters I remember a couple of my
friends in high school saying no one
will want an iPhone since it'll get
fingerprints all over the screen and as
silly as that sounds today many
companies were equally as skeptical
about iPhone's potential success in fact
listen to what then Microsoft CEO Steve
Balmer had to say Steve let me ask you
about uh the iPhone and the zoom if if I
may The Zo uh was getting some traction
then Steve Jobs goes to macor and he he
pulls out this iPhone what was your
first reaction when you saw
that
$500 fully subsidized with a plan I said
that is the most expensive phone in the
world and it doesn't appeal to business
customers because it doesn't have a
keyboard which makes it not a very good
email machine now it may sell very well
or not I you know we have our strategy
we've got great Windows mobile devices
in the market today we you can get uh a
Motorola Q phone now for
$99 it's a very capable machine it'll do
music it'll do uh internet it'll do
email it'll do instant messaging so I I
kind of look at that and I say well I
like our strategy I like it a lot that
denial was Microsoft's first big mistake
although it's much easier for us to
recognize it looking back at the time
not having a physical keyboard on a
smartphone seemed as silly as not having
a keyboard on a laptop and the price of
iPhone was much higher than usual at
$4.99 or about
$756 today with inflation it was 2 and 1
half times more than the average $200
smartphone that alone was enough to
question the product's success since no
company had ever charged that much for a
phone no one was sure how many people
could afford it Not only was iPhone more
expensive but it essentially had the
same functionality of other smartphones
if you just looked at a spec sheet
iPhone appeared to be a ripoff one
button One camera no keyboard same email
phone messaging music and internet
features at more than double the price
it's no wonder that people like Balmer
dismissed it but what companies like
Microsoft and blackberry failed to
consider was convenience and user
experience two things that have proven
to be Priceless to customers when done
correctly with computers we went from
command lines and keyo keyboard arrows
to graphical interfaces in the mouse
something that companies at the time
found childish to include on a
sophisticated computer until Apple
proved customers not only preferred it
but would actually pay more for it and
do you know which company was late to
the graphical interface and mouse
revolution of the80s IBM who in 1990 6
years after Macintosh finally introduced
a personal computer with a mouse this
delay gave competitors like apple HP and
Dell time to establish themselves and
steal market share away from IBM
ultimately leading to the company's
Decline and exit from the PC market with
smartphones Microsoft saw a similar fate
they were understandably confident about
their Windows mobile platform and the
devices that ran it but they were in for
a shocking surprise because when Steve
Jobs introduced iPhone he shared a graph
that showed unit sales in 2006 of
various Industries game consoles were at
the bottom at 26 million units while
mobile phones which included basic
feature phones were far in away the top
seller at
957 million and he set a goal for Apple
to capture 1% of worldwide market share
in 2008 which meant selling 10 million
iPhones this was actually pretty
ambitious considering it took Apple 22
years to reach just 5 million Mac sales
in a single Year Steve balmer's reaction
to Apple app's sales goal was again
denial saying there was quote no chance
that the iPhone's going to get any
significant market share no chance so
how did Apple do well at their worldwide
developer conference in June 2008 jobs
announced that apple had sold 6 million
iPhones putting them on track to surpass
that 1% worldwide mobile phone market
share by the end of the year more
impressive was iPhone's worldwide
smartphone market share which stood at
6.5%
by the fourth quarter of 2007 Ty
Motorola for fourth place but the most
shocking statistic of all was iPhone's
us smartphone market share which at 28%
put Apple ahead of palm and
Microsoft unfortunately Balmer never
issued an updated response about iPhone
6s but talk is cheap anyway what
Microsoft really needed to do was
respond with a strategy shift so that
they could compete with what appeared to
be the future of
[Music]
smartphones in November 2007 about 10
months after iPhone's reveal Google
introduced Android a mobile operating
system designed for touchscreen
smartphones the project was conceived
after Google's CEO Eric Schmidt saw the
iPhone and instantly realized the
industry would move in that direction
there was an opportunity for new
companies to to enter the space and
compete and that's what Google did they
aggressively developed Android with a
goal to reveal a nearly finished product
by the end of 2007 that way Google could
begin providing the operating system to
smartphone manufacturers in 2008 but
Microsoft didn't think smartphones
without a physical keyboard was the
future because at the time they were
mainly used by business customers who
Microsoft felt needed keyboards for
email so they continued to develop the
Windows Phone OS for these devices then
2008 arrived which turned out to be a
defining year for the smartphone
industry Apple introduced iPhone 3G
which was the first Model to be released
internationally and it was much more
affordable than the original iPhone
starting at just
$199 the first smartphone running
Android also shipped in 2008 the HTC
dream which was exclusively sold through
T-Mobile in the US and that's an
important concept to understand because
today things are much different you can
buy any phone you want and pretty much
use it on any network you choose but in
the 2000s network carriers had a huge
amount of control over manufacturers and
one aspect of that control was selling
Network exclusive phones that's why if
you bought an iPhone in 2008 you
automatically entered into a 2-year
contract with AT&T this was obviously
beneficial for networks but it was also
good for manufacturers since the carrier
would subsidize or partially cover The
Upfront cost of a phone making it easier
for customers to afford so manufacturers
could sell more phones and carriers
could acquire more users but carriers
don't just choose any phone to
exclusively support they want one that's
likely to be a best seller so when
iPhone started gaining momentum Verizon
and T-Mobile scrambled for a horse in
the touchscreen smartphone race hoping
to achieve the increased user base that
AT&T was enjoying from iPhone so
T-Mobile partnered with HTC since they'd
be bringing the first Android device to
Market in 2008 and Verizon partnered
with Blackberry since they'd already
established themselves as a market
leader and were about to release their
answer to the iPhone the Blackberry
Storm a touchcreen device that delivered
haptic feedback when you touched a
button but Microsoft wasn't part of the
conversation since they hadn't even
released their own phones yet instead
their Windows mobile OS was still being
licensed to third- party manufacturers
in 2008 and those devices were looking
more dated with each passing month by
2009 the smartphone landscape had
changed even more the Blackberry Storm
had been a catastrophic failure costing
the company $500 million so Verizon was
in need of a new partner and seeing as
how T-Mobile had sold over 1 million HTC
Android phones accounting for 2/3 of the
devices on their 3G network Verizon went
all in on Android with the platform
capturing 3% worldwide market share up
from zero the year before meanwhile AT&T
was beefing up their cellular towers to
accommodate the millions of new users
joining their networks with iPhone
worldwide Apple had sold over 20 million
iPhone 3G units boosting their
smartphone market share to 14% up from
9% by the end of 200 2008 but they
wanted to boost sales even more by
introducing iPhone 3GS and disc counting
the previous iPhone 3G from $200 to just
$100 making the device accessible to
millions of new customers Windows mobile
on the other hand had shrunk for the
first time from 14% in 2008 to 9% in
2009 that was a 36% decline in a single
year Microsoft was finally getting the
message bomber himself admitted they'd
quote screwed up with Windows Mobile
smartphone users whether they typed lots
of emails or not wanted a big
touchscreen without a physical keyboard
so they finally got to work on an
operating system to compete with IOS and
Android that would be released the
following year in October
[Music]
2010 now it's important to consider just
how fast the smartphone industry was
moving during this time four years worth
of changes today is less significant
than 4 years years of changes in the
2000s by 2010 Apple was introducing
iPhone 4 a device that was dramatically
different from the original model in
2007 so for Microsoft to be introducing
their first generation modern smartphone
OS 4 years after apple and 3 years after
Google was a huge disadvantage so how
did they do well their release was
called Windows Phone 7 which replaced
Windows mobile 6.5 and users response to
the new software was mostly positive
reviewers enjoyed the new Metro
interface which delivered a fresh clean
look and an original take on what a
smartphone home screen could look like
the virtual keyboard was praised for its
touch precision and accurate auto
correct while the overall responsiveness
of gestures like pinch to zoom and
scrolling were quick and smooth but
there was criticism mainly about
Microsoft's Focus shifting from business
customers to Everyday consumers for
example the industry deleting security
features of previous Windows mobile
operating systems was missing a crucial
oversight that prevented many companies
from adopting Theos plus Microsoft
Office implementation on the phone was
severely lacking with thirdparty office
apps delivering a better experience
these issues made Microsoft's user base
which mainly consisted of business
customers feeling left out it was clear
that Windows Phone 7 prioritized
everyday smartphone users who mainly use
their device devices to socialize and
consume content and that was a good
strategy since there were a lot more of
those customers than business users but
there was one glaring issue many
everyday users had already chosen
between Android or iOS and convincing
them to jump ship for a new operating
system that hadn't yet proven itself was
a big ask but it wasn't just customers
that needed to be convinced carriers and
manufacturers needed persuading too AT&T
was focused on selling iPhone while
T-Mobile and Verizon were selling
Android devices and unlike Apple
Microsoft only had six retail stores at
the time that meant they'd be relying
heavily on carriers to sell Windows
phones to retail customers smartphone
manufacturers like Samsung LG and
Motorola had already begun using Android
on their devices adding a second
operating system to their product lines
only complicated things Plus android
could be used with no licensing fee
whereas Microsoft charged $15 for every
device sold running Windows Phone 7
discouraging manufacturers from
including it on too many of their
products and this is where Microsoft's
plans started to fall apart despite 20
phones running Windows Phone 7 at launch
carriers weren't sure what made them
better than existing Android devices and
iPhones and customers weren't sure
either and fact when you looked past the
shiny surface of Windows Phone 7 there
wasn't much substance underneath
developers had hardly prioritized the
platform with only about 2,000 apps
available at launch compared to Android
which offered 200,000 and iOS which
offered 300,000 in fact some of the most
popular apps weren't even available
games like Angry Birds and social media
apps like Instagram and YouTube were
missing from Windows Phone 7 this came
as a surprise to many customers who
bought the phone through their carrier
only to find out they couldn't use their
favorite apps this resulted in higher
return rates than Androids or iPhones at
carrier stores whose employees were then
incentivized to discourage customers
from buying a Windows Phone 7 device in
order to minimize their storees return
rate not to mention there were problems
with certain device Hardware that
Microsoft had no control over like the
Samsung Focus which was widely
considered the best Windows phone
available at launch but suffered from
issues with its micro SD card slot not
only could users only only insert cards
with specific read and write speeds but
the device had to be reset to factory
settings after inserting a new SD card
which deleted everything on the phone
needless to say customers weren't happy
about complications like these and
Microsoft began to realize something
Apple understood long ago that they
needed to control not only the software
but also the hardware so Microsoft began
to formulate a new strategy that could
turn around their Fortunes in the
smartphone market and reestablish their
dominant
[Music]
position creating a hardware division
from scratch takes time and Microsoft
had no time to waste they were about to
enter 2011 without a formative product
to challenge Android and iPhone so to
FastTrack the process Microsoft decided
to partner with the hardware company
instead and they were eyeing one in
Finland called Nokia that fit the bill
perfectly not only did they create the
Nokia N9 which in gadget called possibly
the most beautiful phone ever made but
one of Microsoft's Executives had just
been brought on as their new CEO giving
the two companies a unique opportunity
at collaboration the partnership was
also beneficial for Nokia who were
having struggles themselves with
software you see the operating system
that ran on most Nokia phones was called
Symbian and it didn't have the advanced
functionality and smooth user experience
that iPhone and Android delivered with
help from Microsoft they'd have access
to a modern operating system so in
August 2011 the two companies announced
their strategic partnership aiming to
quote combine assets and develop
Innovative mobile products on an
unprecedented scale this meant Nokia
would use Windows Phone 7 as its primary
operating system while Services between
both companies would also be merged like
Microsoft's Bing search engine for
search services on Nokia devices
Microsoft ad Center for search
advertising Services Nokia maps
integration with the Bing search engine
and the merging of Nokia's content store
with Microsoft Marketplace the corporate
structure of Nokia also Changed by
separating its mobile phone Division and
reorganizing its leadership to more
closely align with Microsoft's so the
two companies got to work developing a
new smartphone strategy that could
finally take on iPhone and Android who
by this point in 200 11 had achieved 19%
and 48% worldwide market share with
Microsoft dropping to just
1.4% so they needed to release a new
product fast and in November 2011 they
did it was called the Nokia Lumia 800
which was essentially a Nokia N9 running
Windows Phone 7 Nokia's CEO called it
the first real Windows phone
unfortunately it wasn't very real for
customers in the US since theice Dev was
never available there the reason why it
had to do with their partnership with
AT&T the carrier demanded the phone have
4G LTE but Microsoft didn't think it was
a priority so they released the product
they had ready the Lumia 800 in markets
like Europe and Canada then fast-tracked
4G support to be included on the Lumia
900 3 months later in January 2012 but
by that time their phone was being
released into a smartphone market that
had already matured Samsung with their
Galaxy S2 and apple with the iPhone 4S a
month earlier smartphone customers had
spent the last 5 years choosing sides
between iPhone and Android so Microsoft
would have to provide a very compelling
product to win over entrenched customers
so how did they do well the Nokia Lumia
900 was pretty well received at one
cnet's best of CES award while Forbes
called it the best Windows handset yet
Digital Trends said if you're looking
for a good phone for a reasonable price
this is it Gizmodo said the Lumia might
save Windows phone that it's so quick
and elegant and that the screen
absolutely sings many customers were
also happy with the device it was one of
the most affordable modern Smartphones
at just $99 with a 2-year contract its
live tiles offered a practical benefit
over competitor's Frozen home screen
icons and its am OED display measured
4.3 in much larger than iPhone 3.5 in
screen they also loved having a choice
of vibrant colors which matched the live
tiles on the home screen a concept Apple
adopted more than a year later with the
iPhone 5c so the Lumia 900 was pretty
impressive especially considering how
quickly Microsoft and Nokia brought it
to Market but it was undeniable that
certain aspects of the product were
flawed which would eventually lead to
its demise
[Music]
while the hardware of the Lumia 900 and
eventually Lumia 920 were very
competitive its operating system was not
customers who'd purchased a device
running Windows Phone 7 were shocked to
find out they wouldn't be able to
upgrade to the next operating system
Windows Phone 8 this was due to a lack
of foresight at Microsoft when designing
the initial OS they built it on the
Windows C kernel which was never
optimized for modern smartphones it was
bad at memory management letting apps
run in the background instead of
automatically suspending them eating up
valuable CPU cycles and battery power
installing and writing apps was also
cumbersome and complex making it a
difficult platform for developers to
create apps that's why Windows Phone 7
still didn't have Instagram or YouTube
after 2 years and reviewers were quick
to point this out with wired saying it's
not like the store is empty there's more
than 120,000 apps available they just
aren't the apps you want and with apps
being one of the top reasons people buy
smartphones Microsoft wasn't giving
customers what they wanted to remedy
this they wrote Windows Phone 8 on an
updated Windows NT kernel which
dramatically improved multitasking and
allowed developers to easily Port apps
from Windows 8 but again the drawback
was existing Windows Phone 7 users
wouldn't be able to upgrade and this
wasn't the first time Microsoft made
this this mistake back in 2010 existing
Windows mobile 6 users were not able to
upgrade to Windows Phone 7 now keep in
mind Windows Phone 6 came out in 2007
Windows Phone 7 came out in 2010 and
Windows Phone 8 came out in 2012 that
meant you had to buy three different
phones in a 5year span just to run
Microsoft's latest operating system this
was a slap in the face to customers who
took a chance on a Windows phone and it
created Bad Blood between Microsoft and
their most loyal users who were then
more likely to choose iPhone or Android
in the future there was also still
serious issues with carriers
discouraging customers in their retail
stores from buying a Windows phone still
by 2013 Microsoft had actually recovered
some worldwide smartphone market share
jumping from 1.6 to 3% although still
far off from Android's 78% so in
September 2013 Microsoft made one final
push
purchasing Nokia's smartphone business
outright for $7.2 billion marking the
end of Nokia's involvement in the mobile
phone market at the time from then on it
was up to Microsoft to make it work and
as you might expect they didn't the
first phone Microsoft developed after
purchasing Nokia was the Microsoft Lumia
950 released in 2015 it was their first
to run Windows 10 mobile which replaced
Windows Phone 8 and while the device did
deliver some good features many felt its
design was a downgrade it felt less
premium than other Flagship smartphones
and it didn't have the same colorful
charm as previous Lumia models reviewers
criticized its underdeveloped app
ecosystem and buggy operating system The
Verge said Windows 10 mobile felt
unfinished and that its user interface
was inconsistent Microsoft received so
many complaints about the operating
system that they eventually allowed
users to downgrade from Windows 10
mobile back to Windows Phone 8 by 2016
Microsoft's worldwide smartphone market
share had plummeted by
79% making up
0.4% of the market in just 10 years
they'd fallen from the top spot with 34%
of the market to virtually zero the
writing was on the wall as it became
clear to everyone that Microsoft simply
had no future in the smartphone market
in October 2017 Microsoft announced that
they' no longer sell or manufacture new
Windows 10 mobile devices with the Lumia
950 being their last Flagship smartphone
looking back Balmer admitted that
Microsoft quote would have a stronger
position in the phone market today if I
could redo for example the last 10 years
the thing I regret is that we didn't put
the hardware and software together soon
enough so that is why the Windows Phone
f failed I'm Greg with apple explained
thanks for watching and I'll see you in
the next video
[Music]
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