Microsoft Corporation (MSFT): New Three-Way Partnership a Win/Win/Win

For a while there, Microsoft Corporation (NASDAQ:MSFT) was putting up respectable growth in content availability in its Windows Phone platform. Tech giants like to wield app counts as selling points for their respective operating systems, coaxing users in with the promise of useful apps.

By December 2011, the software giant was up to 50,000 apps, which promptly doubled over the next six months to 100,000. That total would proceed to climb to 120,000 by October 2012.
Microsoft Corporation (MSFT)

Now, seven months since the last count, Microsoft Corporation (NASDAQ:MSFT) has inched higher to 145,000 total apps in its repository. That’s marked deceleration even as Microsoft has been aggressively trying to win over developers.

The company disclosed that tidbit alongside a blog post announcing Nokia Corporation (ADR) (NYSE:NOK)‘s new Lumia 928 that launches on Verizon Communications Inc. (NYSE:VZ) Wireless this week. The three-way partnership is a win/win/win for everyone involved. Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (ADR) (NYSE:NOK) both get increased exposure to the largest mobile subscriber base in the U.S., while Verizon Communications Inc. (NYSE:VZ) is not so secretly rooting for underdog platforms like Windows Phone in the hopes that competition will reduce subsidy expenses.

Both Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) now boast roughly 800,000 apps each in their respective App Store and Google Play storefronts. It’s entirely true that a lot of those apps offer duplicate functionality (flashlight apps) or are low quality (fart apps), but it’s also true that many of those offerings can’t be found on other platforms because indie-developers and start-ups always target the bigger platforms first.

The high-profile names like Angry Birds or Netflix, Inc. (NASDAQ:NFLX) will be mostly given as table stakes. That’s not the point. What’s important is that the real third-party app innovations that drive platforms forward will always start on iOS and/or Android. The next Summly, Sparrow, Mailbox, or Temple Run won’t start off on Windows Phone. Indeed, Temple Run was just released for Windows Phone 8 in March; the popular title made by a small husband-and-wife developer team initially launched only on iOS and then expanded to Android shortly thereafter.

Innovative start-ups will go for iOS and Android first, and only expand to other platforms if they’re not acquired first. That’s the real reason why app counts still matter in the admitted presence of so much junk. It’s no longer just about getting the big names on board, even though that’s also necessary. It’s about appealing to the little guys.

The article Microsoft’s Windows Phone Hits a Wall originally appeared on Fool.com and is written by Evan Niu, CFA.

Fool contributor Evan Niu, CFA, owns shares of Apple Inc. (NASDAQ:AAPL) and Verizon Communications (NYSE:VZ). The Motley Fool recommends Apple, Google Inc (NASDAQ:GOOG), and Netflix, Inc. (NASDAQ:NFLX). The Motley Fool owns shares of Apple, Google, Microsoft, and Netflix.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!