Is Microsoft Abandoning Windows Phone?
Microsoft is writing off $7.6 billion towards their acquisition of Nokia and laying off around 7,800 of its staff, primarily from Windows Phone division.
The news seemingly spelt doom for Windows Phone and as an ardent fan of WP came as a shock. It seems quite uncharacteristic of Microsoft, company doesn’t abandon their acquisitions so abruptly. It is just over a year they had bought Nokia’s devices division for $6.2 billion.
There is however bit of hope post Microsoft’s CEO Satya Nadela’s statement that, Microsoft is still backing their Windows Phone initiative and that they will be releasing limited number of devices with focus on Business (Enterprise), Value segment (Cheaper phones, typically catering users in developing countries) as well as Flagship phones.
Satya Nadella said in an email to all staff:
“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
I also feel that Windows Phone is in for long term and probably Microsoft wanted OEMs to step up and introduce more WP devices. But, I can’t agree to the timing of the announcement. Microsoft is on the cusp of Windows 10 release, and trying to lure app developer with a promise of 1 billion windows users. The announcement may now prevent users in embracing Windows Phones, especially Enterprise users. As an IT manager of Medium Size organization, I need assurance that the service will be supported for longer period and signs are not clear.
Satya Nadela also sent out a memo on retiring Stephne Elop, Ex-Nokia CEO and current Vice-President of Devices and Services group in Microsoft. With Elop’s departure, Terry Myerson, previously Executive Vice President of Operating Systems, will take on his role leading a new group inside the company: the Windows and Devices Group.
