Microsofts Mobile Move Still in Doubt
By Kim Yoo-chul
Staff Reporter
Microsoft hopes to regain its dominant position with the introduction of Windows Mobile 7.0 ― a new version of its operating system (OS) for smartphones.
"Well, I have doubts about the impact of the device on the mobile industry. MS' lack of progress in the phone business may have a black-hole effect, sucking the rest of the company's reputation for innovation down with it," an industry executive told The Korea Times, Tuesday.
The situation is not favorable for MS.
Despite being used by handset majors such as Nokia, Samsung Electronics and Taiwan's HTC, MS has to find a way to boost the use its mobile phone platform at a time when its market share is being attacked by Google's Android.
The Windows Mobile 6.5 OS is ranked just fourth in the global smartphone market, according to data from Gartner, a U.S.-based consultancy.
Gartner has also predicted the windows platform to fall to 8.1 percent by the end of this year, with Android to gain 3 percent to reach an 8.1 percent global share.
"The latest platform realized some big improvements. But the key question is how many handset makers will consistently favor the 'Windows community' amid Android and iPhone attacks," Lee Seung-hyuck, an analyst at Seoul-based Woori Investment, said.
Samsung has already announced a plan to increase its portion of Android phones in its total smartphone line-ups, followed by LG Electronics. HTC and Sony Ericsson are also leaning toward the Google OS.
For future smartphone users, buying handset equipped with Windows Mobile 7.0 could be a reasonable choice as the new platform incorporates social networking, music, video, photos and games to provide a rich, personalized user experience.
The system also has a newly designed home-screen and elements from Microsoft's Zune high-definition music player and Xbox game console.
The Office software has been redesigned and the new platform also integrates MS' Bing search engine.
But the Android platform still has an edge as it is based on open source Linux software and enables greater flexibility for programmers building numerous applications and has features tailored to devices.
"The sourcing structure is the top concern for smartphone manufacturers due to costs. In terms of that measure, it might be tough for MS to sustain growth in the platform market," the industry official added.
Symbian, BlackBerry and Apple are still the top three in the mobile OS market.
Meanwhile, Samsung's mobile phone chief Shin Jong-kyun clarified that the world's second-biggest handset maker will boost the number of phones using its own mobile platform called Bada.
Analysts and observers say MS 7.0 will have "some impact" on the platform market, but added more time will be needed for the giant to be retooled and regain its footing.
MS CEO Steve Ballmer said his company is working with hardware makers such as Toshiba, Hewlett-Packard and Dell.
"MS has some advantages, such as its strong ties with corporate customers through its other businesses. Also I see that Windows Mobile 7.0 wasn't not just an incremental improvement, making it re-brand phones with a more consumer-friendly name," another industry executive said.
"Let's see what happens."