It’s a tough question, really. I mean, after all, the Nokia acquisition should be used wisely by Microsoft, but the question here is how? The tough spot that Microsoft is in should be directed by Nadella, and so far, it does not look so good. I mean, yes, HTC might release a high-end Windows Phone 8.1 handset soon, and more to come from other OEMs, but let’s think about it, how many actual high-end phone has come out so far? One, the Lumia 930, not too impressive, is it Microsoft? So here something I want you guys to figure out: Should Microsoft be focusing more on producing hardware?
On one hand, this would make perfect sense. After all, that’s why Ballmer acquired Nokia in the first place. The company has made a lot of compelling smartphones, and many have predicted that Nokia’s path would have gone differently if they just went with the flow and join the Android army, but no, they chose Microsoft and put their faith in WIndows Phone. Business wise, that might not be the best idea, but not worse ever too. Look at the Lumia line, if you ignore the fact that they all run Windows Phone, they are compelling. That’s why so many people have been begging for a Nokia Android device.
Now, as the owner of the former largest phone manufacture in the world, and all they will be producing in the next few months are low-end devices like the Lumia 630 and 530? I do understand that these are the best-selling series and they are up to date, but what about the high – end models? Lumia 925, 1020, these are also some important series that people has been waiting for an update, not only because they are running on a 2 year-old processor, but to catch up with the Android competition. The fact that there is a lack (and a demand for it, depend on where you live) of high-end Windows Phone should be one of Microsoft concerns if they really want to succeed to the double digits in market share. So why not making your own WIndows Phone, Microsoft? You have the tools, the patents and the talented Nokia Device division to do just that.
Then again… Maybe not!
On the other hand, focusing on making handset can also go very wrong. As of right now, Microsoft does have a lot of partners in its portfolio, and upset them by releasing hardware is a bad, very bad thing to do. Many ramifications will be created if Microsoft ever does something like this. We already see some disagreement between Microsoft and its partner, Samsung in a cross-licensing agreement. Imagine what would happen if Microsoft is making products that will be competing directly to the Samsung Ativ series, or for that matter, other partner like HTC and LG (if they would ever make one).
Also, it has been rumored that Microsoft buying Nokia to level Windows Phone playing field, and not make it a Nokia-only market (although it has always been that way). We have been asking for more diversity in the market for a long time now, and with Nokia is currently not releasing too much high-end device right now, it is a perfect time for OEMs to jump back in this market once again and make some money. Also, with Nokia’s service division, Microsoft can incorporate Nokia’s software to the Windows Phone OS, and just make a better experience overall. The opportunity for not making too many phone here is that Microsoft is going back to its root as a software company. Go back to how the company becomes, provide and licensing software to other OEM, which is what it has been doing for more than a decade, the company is focusing on what it does best is a right strategy to go.
But what do you think
So the question is established, but what is your position on this? Should Microsoft be focusing more on making Windows Phone hardware? Let the debate begin!