updated 12:35 pm EST, Fri December 11, 2009
MS not seen getting the non-work space
Microsoft ought to cut its losses and drop Windows Mobile and Zune, Strategic News Service analyst and founder Mark Anderson said late Friday. He argues that, apart from the Xbox 360, the Windows developer's consumer electronics businesses have largely flopped and that it lacks a fundamental understanding of how these work. Apple, Google and most Asian companies have a far better understanding and are likely to still dominate the field.
"Phones are consumer items, and Microsoft doesn’t have consumer DNA," Anderson explains to the New York Times. "Walk the halls at Microsoft and you can see it is not a place that gets consumers."
Even if Microsoft exits, though it's possible the effects of its failure to compete in home electronics will be felt in its core Windows business. If Windows Mobile fails to hold a significant amount of market share, the strength of Android and iPhone apps is expected to "move upstream" and influence what customers want elsewhere.
For its part, Microsoft has admitted it needs drastic steps and has lately tackled the interface weaknesses that have plagued its handheld devices. Besides releasing the Zune HD, it plans to launch Windows Mobile 7 in the second half of 2010 with a multi-touch interface and some of the Zune HD's media components.