Microsoft Corp. talked up the consumer wireless play at its Worldwide Partner Conference this week, even though “consumer” is not part of its traditional wireless lexicon. Clearly, the world's largest software company is determined to change all that with its upcoming Windows Phone 7 devices. The problem is, can Orange and AT&T Inc., who will get a run of carrier exclusivity at launch, make a go of Microsoft’s new offerings, given the considerable baggage and recent lack of focus that Microsoft has had in the mobile space? Or will Windows Phone 7 be a liability?
Both Orange and AT&T are premier partners for Windows Phone 7 devices, meaning that they’ll be offering them before the competition gets its mitts on the gadgets. Handsets based on the new OS are due for arrival in time for the holidays. But whether taking on the subsidies and marketing spend for the new phones will pay off or not remains to be seen. Microsoft's previous Windows Mobile devices have paled next to the iPhone and Android-based devices, except among business users, who appreciate the integration with their desktop Office software. The reason for that largely has to do with its revenue model: Unlike the free competing platforms, like Android, Microsoft charges handset-makers for access to its wireless OS. That fact hampers the range of devices available. It also has failed to attract many to its app store, Windows Marketplace, which it launched in October 2009. And, let’s face it, the Windows Mobile user interface was/is nowhere nearly as intuitive nor “fun” as Android and the iPhone, or even the BlackBerry.
Microsoft made a high-profile stab at consumer phones with the Project Pink initiative – a group based off its Danger cloud services acquisition – tasked with developing consumer phones. The first two offerings were the “KIN” handsets, which took many people by surprise as they targeted the tween and teen market with built-in social networking capability. Verizon Wireless was the carrier, but it soon saw its not-small spend on marketing the gadgets go down the drain since Microsoft killed KIN before it had a chance to reach puberty — just 48 days after launch, after failing to sell many of them.
Steve Ballmer uncharacteristically admitted this week that Microsoft had “missed a generation” in the mobile phone market. However, Windows Phone 7 will be a turnaround, he insisted. It's a prediction that needs to come true — this launch could be Microsoft's last chance at catching up with Apple or Android.
