Microsoft Hands Cash to Nokia, Samsung to Seduce Customers to Mango
October 18, 2011 10:35 AM
comment(s) - last by
Nokia will receive the majority of the cash
According to a report by the UK's
, Microsoft Corp. (
) hopes to cast a spell on smartphone buyers this holiday season, pouring $44.1M USD into promoting its
new Windows Phone 7.5 "Mango" operating system
. Windows Phone has
struggled in sales
thus far, due to a variety of factors that including
lack of in-store promotion
due to smaller sales commissions and the
deluge of flashier dual core/4G Android hardware
. Still it has arguably the
most innovative interface
on the market.
Of that sum, $31.5M USD (~71%) will go to Nokia, Oyj. (
new special smart phone partner
. Microsoft also plans to contribute a much larger undisclosed sum in terms of "in-store marketing deals" (promotions) to convince sales staff to evangelize the merits of the Windows Phone platform and, in particular, Nokia's
upcoming Windows Phone handsets
Nokia has recruited advertising talent to help differentiate its products via multi-channel ads placed on TV, on the internet, and elsewhere.
Aside from Nokia, Samsung Electronics Comp., Ltd. (
ill receive a large chunk of funding to assist it in promoting its
new Omnia W Mango handset
. That funding will go towards co-funding a $12.6M USD international holiday ad push for Samsung's new Mango handset. Samsung is
the world's largest phonemaker
and has been relatively supportive of Microsoft's efforts thus far.
Windows Phone Division president Andy Lees would not confirm
's exact figures, but did comment, "It’s not good enough to have a ramp that's similar to other guys, you have to ramp faster. That’s what we are aiming to do this holiday season, and particularly into 2012."
For Microsoft the Windows Phone division --
like the Bing search engine
-- continues to be a cash-hungry money loser. However, unlike Bing, which does not appear to have any major momentum towards growth, Windows Phone looks likely to gain at least some market share over the next year as in-store promotion steps up and Nokia's offerings hit the U.S. and international markets.
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RE: I don't understand ...
10/18/2011 8:57:34 PM
Where else besides the store are you supposed to try it out before you buy it? I'm certainly not one to buy on hype and *hope* that it works for me.
My point is exactly that the app marketplace doesn't fill in most niches like the iPhone does - Angry Birds might be there, but it doesn't fill my niche, and for someone else, it doesn't fill their niche, etc. The mass market stuff may be there, but WP7 just doesn't have that richness in the depth of apps that are available for it which make the phone much more personal. It's actually looking like an IOS product might be best for me, actually.
RE: I don't understand ...
10/19/2011 10:10:18 AM
No, you definately need to see one to get it. Herein lies yet another problem MS has to overcome. Right now the only way to really use one is to play with a friends. But nobody has them.
There is certainly a richness to the app store but I think you overstate the importance of that. Once certain minimum has been reached it becomes good enough for most. Android hit this, WP7 hit this. BB hasn't quite, Palm never did. WP7 hit 30k back in august and are adding 100 per day. What's the magic number when it all becomes junk?
The other unique thing is WP7 just doesn't need many of the Apps that Android and iOS do. The hubs do a better job with anything I do socially.
I don't think WP7 will really take off utnil they get their retail presence in order. They need a good demo unit and a salesman that knows how it works. Right now you'll find one in a drawer and a salesman who is an utter android fanboy because that's a phone that has every possible feature under the sun and phone geeks are the ones that would actually use them.
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
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