Microsoft Smartphone Market Share: Many people continue to wonder when Microsoft Corporation (NASDAQ:MSFT) is going to take the plunge and immerse itself in the smartphone game. While this is something the company has definitely considered, it does not appear that a change is coming anytime in the near future. In fact, it appears that MSFT is happy with where it currently stands in the smartphone space.
According to a recent story by CNET, Terry Myerson, the vice president of Microsoft Corporation (NASDAQ:MSFT) Windows Phone, talked at the Dive into Mobile conference about how the company perceives its spot in the market.
Myerson alluded to the fact that Microsoft Corporation would only get involved in developing a smartphone if its partners, most importantly Nokia, was unable to keep up with the demands of the market.
He added, “but we don’t see that happening. So we don’t see a need.”
This is a bit surprising on many levels, including the fact that Nokia is not exactly dominating the market at the present time. That being said, Microsoft Corporation must be comfortable with the direction Nokia is headed in terms of how it deploys its mobile phone operating system.
While it is easy to take what Myerson said and move on, it is important to note that there are other factors involved.
For example, Microsoft Corporation (NASDAQ:MSFT) is no fool when it comes to the economics of the smartphone industry. The company is well aware that it would cost quite a bit of money to develop, manufacturer, and market a smartphone that is able to compete with the big dogs, including the Apple iPhone and many products from Samsung.
Why doesn’t Microsoft at least consider this? In the same CNET article, IDC analyst Kevin Restivo weighs in:
“Making that ‘hero’ smartphone isn’t necessarily the best use of Microsoft’s resources and time. The race (in the smartphone market) is to the bottom.”
This makes good sense, as Microsoft has other things on its place such as a potential smartwatch as well as its new lineup of tablets.
Microsoft Corporation (NASDAQ:MSFT) continues to hope that Nokia can make waves in emerging markets, as noted in this report by The New York Times.
As for now, you should not expect Microsoft Corporation to be working on a smart phone of its own. But don’t count this out in the future. It was not that long ago that the company had no plans to work on a smart watch, and now it is being reported that it has a prototype in place and development will continue.
Check back here for more updates on Microsoft Smartphone Market Share.
DISCLOSURE: I have no positions in any stock mentioned.
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