Surface phone and its impact.

[TrophyNostalgia]

Colored or Practical...

I think that MS will likely fill a void that is not currently addressed by current OEMs. So it won't necessarily compete directly.

OEMs are making consumer focused phones. Nobody is making a phone targeted at business except for RIM.

If MS makes a good phone with a physical keyboard and great connectivity options with great security, then it would be embraced by the business community without necessarily directly competing against their OEMs.

I really think this gets at the heart of the issue. By coming out with their own phone Microsoft is still able to assert control for a more refined product while still ensuring the OEMs have power. Especially consider the business/government oriented phone eco system. The average user is not going to care about a mono-chromatic, practical, "anal" secure phone. Wheras in the realm of business having a phone that is almost completely dedicated to security and integration with Microsoft Office and say networking systems, it could be a huge plus towards making the Windows Phone ecosystem extremely versatile and flexible for all types of users.

There could be say the "business windows phones" and the "consumer windows phones". The colors being widely embraced by both HTC and Nokia seem to support this possibility. Regardless of the outcome I think this is a smart and practical move by Microsoft to retain control but also still honor the freedom between them and their partners.

 

[Gaichuke]

It also offers a solid small user base for testing new updates (like in Android). Give the update first to Surface phones, see if there's problems and if not, release the update to the rest of the devices. If there's a problem, fix it before releasing for others.

 

[squire777]

I think an MS branded phone is the backup plan in case Nokia wants out from their deal with Microsoft. It makes sense because there are rumors that Elop will be on his way out from Nokia, and the rest of the board may want to go with Android instead.

Something just doesn't seem right with Nokia and MS at the moment, especially after the HTC launch and now these rumors.

That's all just speculation on my part but worth a ponder.

 

[X0LARIUM]

Something had to have happened in the NOKIA/MS relationship for this to even be an options. Could be as simple as low sales and MS saying "Hey, consumers are buying your products so maybe somethings wrong and we can do better"

I think its a good backup plan as Nokia is having financial problems ( caused by S.Elop ) and I am not sure if MS buying Nokia is a good investment. I mean Nokia plans to layoff 13,000 by the end of 2013.

HTC still has 1 foot in/ 1 foot out in the Android World. Samsung is growing fat and content so I wouldn't expect much from them...so where would the innovation come from?

And add to that, this:

Nokia rumored to be selling main headquarters in Espoo, Finland | wpcentral | Windows Phone News, Forums, and Reviews

Honestly, I am worried a bit. But I don't think a giant like Nokia will (should) fall like this. I've got some sweet memories of Nokia in my mind. My first phone was a Nokia, not a smartphone by any chance, but a nice cool and colourful 3310.
Ah..good old days. Appless and coreless. Thanks Apple and Samsung, respectively, for ruining those days.

 

[theefman]

Something had to have happened in the NOKIA/MS relationship for this to even be an options. Could be as simple as low sales and MS saying "Hey, consumers are buying your products so maybe somethings wrong and we can do better"

I think its a good backup plan as Nokia is having financial problems ( caused by S.Elop ) and I am not sure if MS buying Nokia is a good investment. I mean Nokia plans to layoff 13,000 by the end of 2013.

HTC still has 1 foot in/ 1 foot out in the Android World. Samsung is growing fat and content so I wouldn't expect much from them...so where would the innovation come from?

Their financial status hasn't stopped Nokia from innovating with their PureView OIS has it? Or is the 920 that underwhelming that MS thought it so bad they had to step in and screw them twice, with HTC first then with their own phone?

 

[SnailUK]

By coming out with their own phone Microsoft is still able to assert control for a more refined product while still ensuring the OEMs have power

I still don't get it.

Microsoft control the OS, and the chipsets. So there will be little or no difference in software and chipsets between Microsoft, and any other OEM.

Its not like Android where Google release the OS, and then the OEMs rip it apart and put their own front end, drivers, etc on it, leaving it vastly different from the OS that comes from Microsoft.

Only way i can see this working, is the "phone" isn't actually a phone, but a Skype device, so theres only a data connection, and all your calls are routed through Skype (like Google voice)

 

[DungMasterFang]

Are you suggesting that Nokia wasn't already on a downward trend?

Well they did manage to set the world record of smartphones sold by a single company in the quarter before the WP announcement and were leading the phone world in device sold by quite a large margin. Symbian was obviously losing some of it's charm, but it's hard to look at it from a north american point of view where Symbian was non-existent.

Exactly. I remember people thinking the N9 was going to save Nokia. It was just a passing fad, after a while nobody wanted one.

It sold quite well for a phone that was released in very limited markets only and not advertised. Actually both N9 and Lumia 800,710 were launched in q4/2011 and N9 outsold both Lumias combined 3.5x despite the fact that Elop told the media that N9 would be their first and last Meego phone

 

[Villain]

wasn't this rumor posted by BGR? BGR is right about 0.3% of the time AND hates windows phone (well hates anything but the iphone)

 

[andrelamont]

Well they did manage to set the world record of smartphones sold by a single company in the quarter before the WP announcement and were leading the phone world in device sold by quite a large margin. Symbian was obviously losing some of it's charm, but it's hard to look at it from a north american point of view where Symbian was non-existent.


It sold quite well for a phone that was released in very limited markets only and not advertised. Actually both N9 and Lumia 800,710 were launched in q4/2011 and N9 outsold both Lumias combined 3.5x despite the fact that Elop told the media that N9 would be their first and last Meego phone

Thats thing...hindsight being 20/20, Nokia was trending down but not like it was crushing as a matter of fact before Elop Q4/2010 they actually showed 7% growth. Q4 of 2009 they were generating 11.2B US dollar/quarter in revenue with a sad symbian/meego products

 

[ListenUpGuys]

For me the big sticking point is that an MS phone wouldn't have Nokia's apps.

 

[andrelamont]

Their financial status hasn't stopped Nokia from innovating with their PureView OIS has it? Or is the 920 that underwhelming that MS thought it so bad they had to step in and screw them twice, with HTC first then with their own phone?

Hey theefman,

Nokia is generating revenue (like in $9.5B USD Q2/2012) which allows R&D, salaries and etc to continue. But the key question how much are they profiting?

• Q2/2011 lost 0.71B
• Q3/2011 lost 0.09B
• Q4/2011 lost 1.2B
• Q1/2012 lost 1.78B
• Q2/2011 lost 1.05B

source

I am no bean-counter, nor do I play one on TV The best solution for Nokia is to get some sales, 660,000 in Q2 in the USA will not get it done. Nokia plan could work but it needs to move quickly

 

[stephen_az]

Anyone is worried about the huge impact that a suface phone could have on other phone manufacturers and especially Nokia who's all in with Windows Phone?

If I have to chose between a Surface Phone and a Nokia, I would certainly pick the Suface, which I believe would be better; on the other hand I love having a choice.

I don't want it to be like Apple, 1 choice... you don't like it? Too bad.

I am not worried because there is room for others in the market. Personally, I also actually expect it will be another concept device that never really sees the light of day. I also feel obliged though to ask why anyone would say they would "choose a Surface Phone" over any other brand when you haven't actually seen or touched any of the devices yet?

 

[Daniel Ratcliffe]

I am not worried because there is room for others in the market. Personally, I also actually expect it will be another concept device that never really sees the light of day. I also feel obliged though to ask why anyone would say they would "choose a Surface Phone" over any other brand when you haven't actually seen or touched any of the devices yet?

Having seen the concept of interchangeable keysets (from a keyboard akin to the HTC 7 Pro to a controller akin to the Sony Ericsson Xperia Play), if it came with a removable battery and 16GB storage it would be a done deal!

 

[astraith]

I truly hope that the Microsoft Surface brand - assuming that is what it would be called - is either a limited release, or even better. have it being a "Droid" like brand. Where Nokia, Samsung or HTC could make a Surface phone. I think bringing a unified brand name would go a long way in helping Microsoft.

But let's be clear - Microsoft making a Surface brand phone themselves will allow companies to consider other options. Competing with a company who can sell a 199.99 phone subsidized by a subscription service agreement undercuts not your competitors but your partners (Nokia) and when Nokia falls - and fall they will - it will send a very negative tone and who knows what will happen to WP.

 

[freestaterocker]

Why would ms buy Nokia? Nokia is not doing that great. There is no point to buy a potentially sinking ship. If Nokia goes down, ms doesn't have to care since they have other partners.

Sent from my SGH-i677 using Board Express

Same reason Google bought Motorola: patent portfolio.

 

[astraith]

Just to add to why MS would buy Nokia ... They aren't bad designers. So many people want the Lumia 920, but say ... Put Android on it. Nokia's woes is because of choices made, and I think WP7 hurt them because everyone knew better phones are on the way. Its sad, but true.

 

[sentimentGX4]

Same reason Google bought Motorola: patent portfolio.

Nokia doesn't have a large patent portfolio. Neither does Motorola. Furthermore, these aren't even useful patents because they'remostly FRAND. The difference is Google had a nonexistent portfolio so it paid for Motorola.

Now Microsoft, on the other hand, has a huge patent portfolio. It's dictated the direction of computing for years and years. Benefits from Nokia's portfolio would be marginal/nonexistent.

That's why Apple doesn't hardball Microsoft like it goes after Android OEMs. Ut knows it cannot win.

 

[Reflexx]

Nokia as a company was u focused and their resources were spread too thin.

At the same time, they were investing a lot of R&D trying to catch up in the smartphone business by designing a better operating system. (MeeGo) It was a bad decision because the market was moving toward powerful interconnected ecosystems, not just phone operating systems.

They are in the process of making the right changes, but it comes with some pain.

 

[cckgz4]

It would have sell more if it was made by Google, a lot of people don't even know that Motorola was bought by Google.

...huh?

 

[SnailUK]

At the same time, they were investing a lot of R&D trying to catch up in the smartphone business by designing a better operating system. (MeeGo) It was a bad decision because the market was moving toward powerful interconnected ecosystems, not just phone operating systems.

Thats the thing isn't it.

WP8 might not look that brilliant on its own, but if i can buy a game on my WP8, and i'm entitled to that game (without buying it again) on Tablet, PC & Console, it'll be a big step better than iOS.

Even better if all these apps use Skydrive to sync (as Microsoft have already shown), so i can just start stuff on one device, and keep moving and continuing on other devices. It would be even better, if i could have different versions of a game intercommunicating, so i have the phone, console and tablet versions, all slightly different, but using the same saved game files.

I can already do this sort of stuff with some apps (like Sky Wallet), but i want more of it.