Analyst says Microsoft has two options for Windows Phone

Jul 2, 2015 05:27 GMT  ·  By

With work on Windows 10 Mobile advancing at full speed and plenty of rumors regarding the future of the platform, Windows Phone makes the headlines on a regular basis these days, pretty much because opinions are still divided on what exactly Microsoft should do with this particular product.

Rumors swirling around the web these days claim that Satya Nadella, Microsoft’s new CEO since 2014, is considering giving up on Windows Phone completely, although details and any other specifics are not available. Keep in mind that this is just a rumor for now and very unlikely to happen anytime soon, given the fact that Microsoft has invested millions of dollars in the development of new phones and Windows 10 Mobile.

Keep investing, but with bigger losses

While some experts believe that abandoning either Windows Phone or Lumia and focusing on the products that bring home the bacon is a better choice, Jefferies analyst John DiFucci said in a note to investors that doing that is not an option for Microsoft and the company needs to either accept Android’s and Apple’s market domination or continue investing money in Windows Phone in an attempt to make it a better rival to the two.

“We see the Phone Hardware business as poorly positioned versus the established Apple and Android ecosystems and believe Microsoft will have to either make significant investments to drive scale (and thus higher losses) or accept lower market share and market relevance,” he further explained.

Right now, Microsoft indeed seems to be willing to continue investments in Windows Phone and Windows 10 Mobile, and sources coming via unofficial channels indicate that Redmond is at least planning to bring out the new projects that it’s currently working on and only then make a decision on the future of the platform.

This means that Windows 10 Mobile will certainly make it to the market and so will a bunch of new devices that are specifically developed to serve as the pioneers of the new platform, including the flagship Lumia 940 and 940 XL, both of which are said to come with brand new hardware and innovative features.

For the moment, Windows Phone sits at around 3 percent market share, so it’s pretty clear that, with Windows 10 Mobile, Redmond has to play its card right. Otherwise, Microsoft could become the new BlackBerry, although the Canadian phone maker, which has around 1 percent of the market, has a loyal customer base that makes it possible to maintain its share.