Microsoft Corporation (MSFT): A Quiet Force in the Smartphone Wars

Page 1 of 2

In a market that had been fairly solidly a duopoly that pitted Apple Inc. (NASDAQ:AAPL)‘s iOS against Google Inc (NASDAQ:GOOG)‘s Android, Microsoft Corporation (NASDAQ:MSFT) is subtly making significant inroads. Much of the company’s success has been driven by a comprehensive global strategy that is taking aim at the lower end of the smartphone market, a segment that is so totally dominated by Android at present that it has forced Apple to consider producing a cheap iPhone. Not only does Microsoft Corporation (NASDAQ:MSFT) continue to see new lower-end smartphones like the Nokia Corporation (ADR) (NYSE:NOK) Lumia 620 receive very positive reviews, the company recently partnered up with Huawei to start selling Windows Phones in Africa.

The final part of the puzzle is that for as well as the new Z10 from Research In Motion Ltd (NASDAQ:BBRY) was received, when large, enterprise customers like The Home Depot, Inc. (NYSE:HD) very publically drop BlackBerrys for iPhones, Microsoft Corporation (NASDAQ:MSFT) is the real winner. Certainly Apple enjoys the recognition, but the 10,000 devices involved in the switch are more harmful to BlackBerry’s bid for the No. 3 spot than beneficial for Apple. Microsoft and Nokia have collectively been fighting for the third spot, and with BlackBerry taking body blows, Windows phones can focus on the future. Ultimately, Microsoft is building steam and should be a part of your portfolio.

The Lumia 620 and emerging markets
Emerging markets represent the fastest-growing segment of the smartphone market around. To put this in perspective, where the global growth rate for smartphones has been estimated at 46%, in emerging markets, that number spikes to 63%. It is within this arena that Google has made so much of its recent progress, allowing it to command 68.3% of the global smartphone market.

The recent review of the Nokia Lumia 620 by Engadget is highly positive on the phone, particularly relative to Android: “[I]t’s arguably more attractive than most Google-powered phones around the same price point and could prove to be a huge hit among smartphone beginners.” The review also remarks that the “Lumia 620 represents a new high-watermark for entry-level smartphones, regardless of OS.” Priced at roughly $236, the phone is not the least expensive option, but it is offered at a price point that should allow Nokia and Microsoft Corporation (NASDAQ:MSFT) to gain serious traction.

Home Depot and BlackBerry
While our mothers taught us not to take pleasure in the misfortune of others, the recent announcement that Home Depot was dropping BlackBerry should be seen as a positive for Nokia and Microsoft. The battle for third in the smartphone wars has been a critical rebound story, meaning a blow to BlackBerry helps Nokia. Apple, which will be receiving the business of the store, district  managers, and corporate managers at the world’s fifth-largest retailer, is the apparent beneficiary of the move, but for a company that sold nearly 50 million iPhones last quarter, another 10,000 is not news. At the end of the day, if BlackBerry fails, Windows Phones can take more direct aim at Apple and Google.

Microsoft in Africa
In a further, and potentially important, move into emerging markets — in part because it does not include Nokia — Microsoft recently announced that it will be partnering with Chinese manufacturer Huawei to bring a low-cost Windows Phone to Africa. The device, to be called the Huawei 4Afrika Windows Phone, will initially be sold in seven countries and cost $150. While this is lower in cost than the Lumia 620, the features included in the new smartphone will be limited relative to the Nokia option. Furthermore, Nokia is expected to release a device in the region shortly.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!