Microsoft Lumia Windows Phone: Is This Really The End? Restructured Phone Business Expected
- Maria Myka
- Jul 10, 2015 07:21 AM EDT
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Is it the end for the Windows Phone and the Microsoft Lumia? According to Computer World, it is, as Microsoft has written off the series for around $8.4 billion.
The losses had been so massive that Microsoft CEO Satya Nadella has cut around 7,800 jobs -- one of the largest job cut in the company -- most of them from the Lumia division. The Verge reported that Nadella refuses to be in the business of mass-producing phones, insisting that he wants the company to focus what it does best in mobile.
Not that they are cutting the phones from the company. The Windows phones can still be an asset to Microsoft, although it seems that they have a different plan for the Lumia altogether, involving flagships, low-cost devices, and business phones.
The Verge reported that Window Phone sales have been weak, and people lacked carrier interest. It doesn't have support from global brands like Samsung, Sony, HTC, and LG either, so without interest from app developers for the Microsoft platform, it is difficult to penetrate the competitive market of smart phone use.
While Nadella's restructuring could help the company's business, there is no telling exactly what it will entail, as he failed to clarify what he meant by restructuring, saying instead that it will be a "more effective phone portfolio", and boasting of "better products."
So what's the end game for Microsoft's Lumia phones? According to Nadella, "In the near term, we will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group."
He also added, "We plan to narrow our focus to three customer segments where we can make unique contributions and where we can differentiate through the combination of our hardware and software."
While it may be similar to Apple's relatively small selection of iPhones, Microsoft does not share the tech giant's vast number of consumers, and may not attract them the same way as Apple products would.
With Surface products being the cornerstone on Microsoft gadgets, Windows Central noted that Microsoft does not control hardware market, and is purposely limiting its offer in terms of smartphones so as not to offend their partners, many of which were already worried when the first Surface products were announced.
Do you think this is the end for the Lumia phones, or can Microsoft still save the line with their planned restructuring in the company?
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