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Microsofts Mobile Strategy

Microsoft reported earnings today and also mapped out their Windows Phone 7 mobile operating system strategy. On November 8th AT+T will launch HTC Surround and Samsung Focus. This will be the latest venture into the mobile market for Microsoft. Of course some may remember the ill fated Kin launch this summer and its quick demise. Of course Kin has rolled into the Windows 7 phone team. So perhaps its demise was slightly overly exaggerated and Kin was only a beta for this real launch? In reality wasn't Kin just another social Droid and many of those didn't last very long either?

So the questions are where does this strategy going to take Microsoft? Where does it fit in against two huge incumbents Google and Apple? How in the world has a company like Microsoft fallen so far behind the competition?

Where is this strategy taking Microsoft? Well its worked well for other giants but it seems like they are way behind the curve. Can they get back into the race? Well reading about the first two phones being launched they seem to be top of the line. But are they really better than what you can buy from half a dozen other companies. I doubt it.

How does Microsoft fit in against Google and Apple. Not well. Established users have to have some reason to switch. People I know would rather switch to the iPhone if Verizon had it.

The real question is how did they fall so far behind? This is the multi-billion dollar question. The answer is simple. Revenues jumped 25% and earnings 51%. They certainly did not need it. They have focused on what they do best, Windows 7 and Office. Investors are skeptical and should be skeptical of this move into mobile. Until Microsoft becomes committed to the mobile market like Google and Apple investors should be skeptical.

Disclosure: No positions