Ballmer sees an “upside opportunity” in having almost no market share with Windows Phone

Tonight, Microsoft is hosting their 2022 Fiscal Annotator Meeting, addressing shareholders virtually the current status of the company and its future. About of the discussion, which is ongoing as we write, has focused on cloud computing, Xbox, Windows and all of Microsoft's services.

Outgoing Microsoft CEO Steve Ballmer took the stage within the last hour and elaborated on many of these areas, including Windows Telephone. While not a lot of time was spent on the growing division, Ballmer did of course talk almost the recent Nokia purchase.

Below are Ballmer's verbatim comments:

"Mobile devices. We take most no share. I don't know whether to say that with enthusiasm or kind of uncomfortable tension. Only I'm an optimistic guy. Any time nosotros have low market share sounds similar upside opportunity to me. We're paying to exercise it all day every day…It's getting after information technology and really making sure we deliver the kind of revenue and gross margin upside that's certainly there.

The Nokia deal is a lot of things. One of the things it is, is a mode to make sure we can capture the gross margin upside because we're making well-nigh of the investment today, that we need to make fifty-fifty owning Nokia. Nosotros're very excited to accept a chance to capture the gross margin upside..."

The admission by Ballmer is fascinating if simply because Microsoft appears to exist facing the reality that Windows Phone, while promising, still has quite a long mode to go before it is a profitable and successful business partitioning for the visitor.

The Nokia deal should assistance streamline the manufacturing of Windows Phones by knocking down walls betwixt hardware and software evolution teams. At that place should also be "fewer secrets" as Microsoft's Joe Belfiore recently mentioned about the bargain.

Nokia has recently taken the pb in Russia over Samsung, Windows Phone has maintained a number ii status in Bharat and the OS has experienced explosive growth in Mexico. However, market share in the US has remained below 5% despite an ambitious campaign through AT&T, Verizon and T-Mobile. Overall, shipments for Windows Phone are upwardly 77% year over year.

Will Microsoft exist able to pull it off? In theory they accept everything they need to make a successful improvement in mobile. But there are a lot of 'ifs' and 'buts' that could affect the consequence for Microsoft. At the very least, they seem keenly aware of how much work is left to practise.

Source: Microsoft

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