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But some of the countries are relatively small markets

Microsoft Corp. (MSFT) was quick to seize on good news from market analytics firm International Data Corp.'s (IDC) survey of international phone sales.  While the report unsurprisingly showed Android to be the king of virtually every region, the report showed that in some nations Windows Phones are outselling Apple, Inc.'s (AAPL) iPhone.

But before Apple fans explode with indignation, yes there is a catch.  Windows Phone outsold the iPhone in a smattering of emerging markets, where the high price of Apple's trendy phone is probably a barrier to sales success.  In total Windows Phone led the iPhone in Argentina, India, Poland, Russia, South Africa, Ukraine, and "rest of central and eastern Europe".

The success in India is a pretty big deal because that's going to be a huge smartphone market.  But other regions like Ukraine, South Africa, and "rest of... Europe" (smaller countries) are all markets of 100,000 or less smartphone units annually.

Lumia 520
The Lumia 520 [Image Source: Nokia]

The arrival of low-end Windows Phone devices -- namely Nokia Oyj.'s (HEX:NOK1VLumia 520/620 -- has certainly boosted Windows Phone.  Much like Android, Microsoft and its third-party hardware partners appear to be starting their assault on the iPhone at the low-end.  While today's flagship Android phones put the iPhone's hardware to shame, the earliest Androids were largely budget devices.

It remains to be seen, though, whether Windows Phone can duplicate Android's successful creep into the high-end of the market.  Microsoft is betting big on the Windows Phone Blue refresh, which will likely be the next major platform refresh.  That update is expected to land sometime in the October/November window.  The good news for Windows Phone 8 device owners is that Microsoft reportedly will be supporting current generation devices in the upgrade this time around.

Source: Microsoft [TechNet]



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RE: Good progress...
By 91TTZ on 3/28/2013 10:41:53 AM , Rating: 3
They are large markets, but they're markets operating at a loss. Microsoft/Nokia/HTC are most likely losing money selling phones in Russia/China/India. This isn't a design win for them.

The people in India and China aren't buying these phones because they think they're better, they're buying them because they're being sold cheap. The Chinese and Indians with money are buying Apple or Samsung phones, and those are the only phones making a profit.


RE: Good progress...
By mcnabney on 3/28/2013 11:34:02 AM , Rating: 2
I would point out that Apple sells their devices in surges. We are coming up on their next product launch so people who are interested in a new iPhone are waiting, while several new (and inexpensive) Windows Phone devices have been recently launched. So outselling Apple in February isn't a big deal really.


RE: Good progress...
By bug77 on 3/28/2013 1:24:36 PM , Rating: 2
Operating at a loss? Check out the price of HTC One in Russia:
http://www.gsmarena.com/htc_one_to_hit_russia_in_a...
Also check out the price in India:
http://www.aegindia.org/2013/03/htc-one-listed-by-...

It's much more expensive than in UK or Germany. Google is your friend.


RE: Good progress...
By 91TTZ on 3/28/2013 3:28:32 PM , Rating: 2
Google is my friend. And Google already told me that Apple and Samsung eat up all the profits in the industry. Mathematically there's no way that HTC is profitable right now.


RE: Good progress...
By bug77 on 3/28/2013 6:36:03 PM , Rating: 3
Do not change your tune.

You said:
quote:
The people in India and China aren't buying these phones because they think they're better, they're buying them because they're being sold cheap.


I have shown you people in those markets pay hefty premiums to get the phones, which is quite the opposite of your claim.


RE: Good progress...
By 91TTZ on 4/1/2013 2:14:47 PM , Rating: 2
I'm not changing my tune. You're just confused.

I pointed out that Apple and Samsung are sucking up all the profits and that cheap phones dominate in markets like India and China.

You pointed out that HTC offers an expensive phone but that proves nothing. People with money tend to buy Apple or Samsung phones, not expensive HTC phones.


RE: Good progress...
By EricMartello on 3/29/2013 4:34:49 PM , Rating: 2
quote:
They are large markets, but they're markets operating at a loss. Microsoft/Nokia/HTC are most likely losing money selling phones in Russia/China/India. This isn't a design win for them.


I wouldn't be so sure. Taking a loss up front on hardware sales and betting to recover it on app sales is a viable business model - and I think that's exactly what MS is banking on here. If they gain enough market share they should attract more 3rd party apps.

quote:
The people in India and China aren't buying these phones because they think they're better, they're buying them because they're being sold cheap. The Chinese and Indians with money are buying Apple or Samsung phones, and those are the only phones making a profit.


A lot of people just aren't aware of Windows Phone because it gets so little attention, but IOS is starting to fizzle out and Android was basically a poor-man's IOS...so it too is going to fizzle. MS has a pretty big opportunity here to turn the smartphone OS market to their favor because Windows Phone isn't just different, it's better.


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