Seeking Alpha
  • David Jackson
    If $MSFT bought $NOK to gain share for WinMobile, will it sell phones at zero margin like $AMZN Kindles? Risk to $AAPL, $GOOG?
    9/8/13
    Reply (15)
    • gabi1: thats a good question, im thinking they prob would
      9/8/13
    • David Jackson: Perhaps $MSFT's goal is to establish WinMobile in the market thru low margin phones, and then make money licensing the software to others.
      9/8/13
    • jamesingram32: you think they have learned their lesson from the Surface?
      9/8/13
    • DumpsterDiver: It appears the lesson they learned from Surface was "Buy a company that knows how to do inventory & supply chain management." Otherwise...
      9/8/13
    • DumpsterDiver: ...given Ballmer's comments about being able to earn a higher margin on a whole phone than just on an OS license, it doesn't sound like it.
      9/8/13
    • DumpsterDiver: Somebody (lost the link, sorry) made an interesting comment recently about the inherent conflicts of being a "devices and services" company.
      9/8/13
    • DumpsterDiver: Namely, that devices companies try to maximize device margins whereas services companies hand out devices at cost or below to drive traffic.
      9/8/13
    • DumpsterDiver: The fact that Microsoft doesn't want to choose and has simply proclaimed that it'll do both at once seems pretty par for their course....
      9/8/13
    • jamesingram32: +1, I might have been too subtle there. I don't think MSFT are good at hardware, although they did win with Xbox
      9/8/13
    • jamesingram32: surface failed partly because of the comedy high price they put on it.
      9/8/13
    • DumpsterDiver: That bad habit dates back at least as far as the Zune HD, which always seemed to price about ten bucks higher than the equivalent...
      9/8/13
    • DumpsterDiver: ...model of the iPod Touch, despite Zune not having an app store. Superb device btw, worth every penny if you bought one...
      9/8/13
    • DumpsterDiver: ...but that doesn't matter much if virtually the entire market DOESN'T buy one. Which they didn't. Better pricing would have helped greatly.
      9/8/13
    • DumpsterDiver: Well, who knows if it would have. Dedicated media players were already becoming a tough sell by then. But it certainly couldn't have hurt.
      9/8/13
    • DumpsterDiver: At least this time around, Apple will have some cheaper iPhones for them to price-match against, too.... :)
      9/8/13