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 ...
10/19/2011 6:52:22 AM
Unlike Android, WP7 has a great UI and an excellent SDK. All it needs are more applications and faster hardware and it can stand toe-to-toe with iOS.
It really is a great, polished mobile OS. The fact that Microsoft has failed to properly market a product that is so superior to Android kind of blows my mind.
IMO they really should encourage and market integration between WP7 and the XBox 360. There are millions of 360s in homes, and being able to use a WP7 device as a remote control or even a controller for certain games could be incentive for some people to buy one. I know that using an iPhone, iPod, or iPad as a remote control or audio output for home theater receivers, stereo docks, computers, or AppleTV is a great application.
Then there are third party developers doing this, and there's no reason it shouldn't be possible with an XBox:
Microsoft is sitting on
entire game studios
that they could devote to mobile gaming or applications that drive WP7/360 functionality. It would probably sell well and it would be a really good showcase of the technology.
It's a chicken and the egg situation with applications since they need the customers to drive more third party development. The SDK is great and they have a great app store, so they're like iOS in terms of quality but without the users. Microsoft leading the charge with their software development and building a platform with the 360 could actually help.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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