Microsoft needs to shift gears and make adjustments to its mobile business
The recent failure of the Microsoft Kin smartphone -- leading to the phone being pulled within two months -- will force the software giant to rethink its future mobile efforts.
As the desktop software market continues to tighten, the mobile market is expected to be a major business venture for software companies. Google has moved into the market with its Google Android Linux-based OS, and has seen growing success against Apple, Research In Motion, and other established contenders.
"They cannot not be in the mobile phone space, and they have to be a big player," said John Jackson, CCS Insight analyst, in a recent interview. "They have to have something out there to compete with the iPhone and Android because the future of computing is mobile. It's that simple."
Microsoft must now go back to the drawing board and rethink its mobile phone efforts -- the company's 30 percent marketshare in 2008 has continually dropped since then. Apple, a company watching its smartphone business grow higher, was first criticized when it announced its entrance into the smartphone market.
Creating a dynamic, user-friendly mobile software platform with an app store should remain a dedicated goal for Microsoft. The company's Windows 7 desktop OS is increasing in popularity and the Windows Phone 7 is expected to help combat other rivals.
In addition to its software business, Microsoft is an ideal situation with the Zune media player, Xbox 360 game console, and several growing businesses. Adding an appealing smartphone sector would give Microsoft the ability to promote products across multiple platforms -- something its competitors cannot currently do.
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