Microsoft Pinning Hopes On New Operating System
October 10th, 2010 | by Mobile Data Group |Microsoft unveils a new mobile phone operating system this week in what is being seen as a potentially make-or-break effort by the US software giant to remain a player in the hotly competitive niche.
Microsoft chief executive Steve Ballmer is to take the wraps off a new line of smartphones powered by Windows Phone 7 (WP7) at an event in New York and the devices are expected to hit stores around the world in the next few weeks.
Though mobile makes up only one per cent of Microsoft’s revenue, Morgan Stanley analyst Adam Holt said WP7 is a “pivotal release” for the Redmond, Washington-based company.
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“This is an 11 on a scale of one to 10,” agreed Ramon Llamas of technology reseearch firm IDC. “They’ve been slow to come to market, and when they do, they use yesterday’s technology. There’s some catching up to do.”
Ballmer is confident WP7 will help Microsoft claw back market share lost to Apple’s iPhone, Research in Motion’s Blackberry and devices powered by Google’s Android mobile platform.
“I think our products will stand out compared to any others,” Ballmer told a business conference in Madrid. “We would not be launching the product if we did not feel good about its chances to do well.”
Analysts are cautiously optimistic about Microsoft’s future in a smartphone market which Morgan Stanley estimates is seeing annual growth of 38 per cent.
“While WP7 is debuting in the midst of intense competition, Microsoft seems to have developed a viable next generation mobile platform which may help the company gain credibility in mobile,” Morgan Stanley’s Holt said.
Since its launch in June of last year, Microsoft’s new internet search engine, Bing, has steadily gained market share and its Windows 7 computer operating system has been a commercial and technical success.