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WP7 either a "ringing success" that "didn't exactly make waves"

EWeek is reporting that reports of first-day Windows Phone 7 sales have run the gamut of lackluster to impressive, depending on whom you ask.

The Seattle Times deemed the new mobile OS from Microsoft a "ringing success." An AT&T spokeswoman told the news outlet: "We did have lines in some of our markets across the nation. There definitely was anticipation for the phone." She did not provide any sales figures, though.

At T-Mobile, the HTC HD7 was briefly sold out online, but is now back in stock. The Times reported that a store in Bellevue, Wash. had sold only three of the devices by noon of launch day.

On Twitter, the #wp7 hash-tag has provided some additional insight into user's experiences with the device. "Got lucky and snagged a Samsung Focus this morning before it sold out. Was too late at the MS store, but AT&T had 1 left. I need it!," wrote sirkirby.

But first day sales numbers, as reported by The Street, weren't exactly extraordinary. The financial news website said Windows Phone 7 "didn't exactly make waves" on launch day, selling "a mere 40,000 Windows 7 phones." In comparison, Apple's iPhone 4 sold 600,000 units in pre-orders alone (coincidentally, that's the same amount of Windows Mobile devices Microsoft was able to sell in all of Q3 2010). Meanwhile, The Street has pinned Android's daily sales figures at 200,000 units per day.

"It's early in the game," a Nielsen telecom analyst told The Street. "Not every product surges right out of the starting blocks. The first Android phone [G1] was not a big seller at T-Mobile," adding that Black Friday and Christmas sales will be a better test of WP7's staying power. By then, Verizon, the nation's largest mobile carrier, will also be in the Microsoft mix, which should help boost sales figures.

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give it time
By Da W on 11/10/2010 8:57:20 AM , Rating: 3
5 billion cell phones on the planet, not even 100 million smartphones yet. Owning 30% of the smartphone market today means nothing in the grand scheme of things.

RE: give it time
By Smilin on 11/10/2010 9:27:30 AM , Rating: 3
Owning 30% of that market is like being #1 in PC sales in 1986.

RE: give it time
By corduroygt on 11/10/2010 2:15:36 PM , Rating: 2
Like Commodore?

RE: give it time
By Smilin on 11/10/2010 3:40:53 PM , Rating: 2
Yes like Commodore (kinda). I mean how dare Dell computer (started in roughly '84-'86) think they can compete when they are so late to the game!

Apple will trounce the late comer the same way Commodore did.

RE: give it time
By Rasterman on 11/10/2010 10:45:22 AM , Rating: 2
Apples and oranges! and of those 5 billion cell phones how much do they cost? how much do people spend on apps? ringtones? text messages? there is a vast difference in the economics of 5 billion $10 cell phones vs 100 million $500 smartphones. Google and MS can sell 100x the number of iPhones and they still won't even hold a candle to the app store, currently Apple makes over 99%, yes 99%! of the entire market of phone app sales, a VERY lucrative market, the margins are huge. And with carriers making $30/month on dataplans with smartphones, I wouldn't be surprised if the much smaller smartphone market is making much more than the entire rest of the 5 billion cell phones. Especially given that most of the 5 billion cell phones are in China and India where plans are a few dollars (USD)/month.

RE: give it time
By Smilin on 11/10/2010 1:53:20 PM , Rating: 2
If you look behind and above you and slightly to the left you may just be able to make out the vapor trail of where the point he was making flew past you.

RE: give it time
By Da W on 11/11/2010 9:48:34 AM , Rating: 2

Yeah for slower minded ones, here's the point: there was once zero sell phones, it grew to 5 billion, there are almost as much cell phones as there are human beings (yet not enough food for everyone). 5 billion is the potential smarphone market, it will get to that point once day. So even if Apple has 100 million iphone sold and MS has 40000 units sold on day one, in 2010, thing will be a lot different in 2011, 2012, 2015, 2020... get it? The war is only beginning.

RE: give it time
By melgross on 11/10/2010 11:12:32 AM , Rating: 2
There's a lot more than 100 million smartphones out there, and it's not likely that there are 5 billion cell altogether.

And who cares about throwaway phones, and free basic models? We're just concerned about smartphones. What seems clear is that Nokia is going down fast, RIM is moving down more slowly, and that iOS and Android will be the biggest winners.

As far as the iPhone goes, it still isn't available from some of the biggest vendors around the world. When it is, things could change.

Whether WP7 will join them isn't known yet. The one thing it has going for it so far is MS's usual persistence. Other than for the KIN, they've stuck with hardware even if it did poorly, such as the Zune.

RE: give it time
By omnicronx on 11/10/2010 2:25:13 PM , Rating: 2
So if I see 10 million phones at a dollar a piece is that more influential 'in the grand scheme of things' than selling 100,000 smartphones at 100$ a pop?

Total sales mean absolutely nothing if we don't know the margins associated with them.

(If you don't realize where I am going, smartphones traditionally have much higher margins)

RE: give it time
By Smilin on 11/10/2010 6:05:06 PM , Rating: 2
I think his point was that the smartphone market is still very much in it's infancy. Being number one right now doesn't matter since the game hasn't even really begun.

iPhone dominates right now but so did the Apple IIe back in the day.

RE: give it time
By omnicronx on 11/10/2010 6:45:42 PM , Rating: 2
Smartphones are merely an evolution of normal cell phones, so you are not really making a fair comparison.

Just look at the big players in the cell phone market, aside from Apple what has really changed since the mid 90's when nobody had cell phones?

History has shown us what kind of advantage being early to the game can give you in the technology market. Especially when you consider how encumbered everything is these days.

The fact remains that the phone markers are focusing more now on higher margin smartphones than 'dead phones'. How many people have phones is means a lot less when smartphones are starting to approach 'dead phones' when it comes to profits.(even with much smaller sales)

RE: give it time
By Smilin on 11/12/2010 10:46:50 AM , Rating: 2
I don't think history has really shown us this.

Did being the first "PC" maker help IBM? First pascal/C maker help Borland? spreadsheet: visicalc? what about Palm? Network OS ... Novell? what about television pioneers... RCA?

If being an early player gives you an advantage then why is Microsoft having to RE-enter the smartphone market.

Really the game is only beginning. Some are off to an early lead but the first lap isn't even over.

"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

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