Microsoft’s Chance To Redeem Itself In The Emerging Smarphone Markets
With Satya Nadella, Microsoft’s new CEO, recently explaining at the CODE Conference that we are in a “post-post-PC era” where the company intends on putting all its chips on a “cloud first, mobile first” future, it makes us wonder how Microsoft exactly intends on overtaking its competitors in the smartphone arena, after all smartphones are the pinnacle of modern technological mobility.
It’s no surprise that Android followed in second place by Apple is dominating the Smartphone market share currently. However, in a recent forecast by the IDC, good omens are predicted for Microsoft in emerging Smartphone markets such as Brazil, Russia, China, and India where its shipment volumes are expected to increase progressively.
Metaphorically speaking, these emerging markets are a completely different beast and are potential gold mines for hardware and app developers because they are not overloaded yet. Average consumers in countries which make up these markets do not make enough money to be able to buy Apple devices. So that leaves Microsoft and Android to brawl it out till the end.
In order to sell smartphone, hardware tech giants are well aware of the fact that you need developers to work on their native software operating system to constantly upgrade build and support newer technology.
Android currently generates app revenue via Google Play. However, with the newer wave of Android phones surging in these emerging markets, they will end up not making enough money for Google due to payment issues which in return will discourage Android app developers to make apps for its platform.
Consequently, this gives Microsoft a golden opportunity to go toe-to-toe with Android in this arena. It looks like Microsoft wants to empower its app developers in an attempt to seize a greater market share in such countries, by giving them more payment tools to work with.
Unlike Google who has pressurized to delete apps made by developers who use third party payment systems, Windows Phone developers are not obligated to make use of Microsoft’s app selling system. They have full liberty to utilize a plethora of financial solutions such as carrier billing, e-wallets, scratch cards, and other services which are unique to specific areas.
Despite it being blatantly clear that Microsoft wont be upsetting Android or Apple’s mobile market share anytime soon, there is a realistic possibility of Microsoft growing in popularity in such markets. The real question here is whether Microsoft has a clear cut strategy laid out which it intends on executing in order to claw its way to redemption.
Unlike the leading smartphone juggernauts in the market, Microsoft has to address serious key flaws in its marketing strategy. If it ever wants to push its software services on all mobile devices, it needs to reassess its take on how it will exactly acquire more market share without sneaking in tablets as this seems to be its go to plan whenever it wakes up on the wrong side of the bed.
Does it have a plan on sustaining the hype regarding its smartphone devices which have been revealed to run on Windows 8.1 because as of now, Android is rampaging with nearly two-thirds of the smartphone market. And lastly what can it do to combat Android’s strategy of flooding the market with cheap smartphone devices, because only those will sell in such markets.
In the past, Microsoft has had relative success with its Lumia but it will have to kick things up a few notches to take down the Goliath that is Android. Let’s wait and see whether Microsoft makes any “Big Plays” in the coming future. What are your thoughts?