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Microsoft to make first-party phone for the next two years

Nokia-Lumia-Amber-Update-620x313As everyone’s heads explode about the massive layoff in the mobile division of Microsoft, new fear starts to emerge. Will Microsoft kill its smartphone line? Will there even be a phone within the next year or so? Should we just go out and get the ICON on Ebay because Microsoft won’t be making phones anymore? So many unanswered questions relate to this layoff. But everyone can calm down, for at least two years.

Bloomberg reports that despite the release of 7,800 employees, mostly from the mobile phone division, the company is still committed to make more mobile devices, at least for the next two years. Diana Bass and Olga Kharif explained:

“The company expects to make its own phones for at least the next two years, said a person familiar with Nadella’s plans who asked not to be named because the plans aren’t public. Microsoft will try to play up its strengths in the markets it has chosen, such as corporate security and collaboration software for business customers.”

“Instead of trying to sell as many phones as possible, Microsoft will concentrate on three categories: business phones, high-end models and value phones like the Lumia 520, which, at more than 25 million units sold, is the company’s best-selling device.”

Reporters continue, saying that the company “will exit carrier relationships and countries where it hasn’t been successful.” However, it will remain selling in the U.S “because of the market’s size and significance.”

Moreover, the internal email that was reported by ZDNet, we can start to see the path for Lumia devices in the future:

“Going forward, we will focus on building the very best Windows phones on a quicker timeline. We will also focus on the channels and markets that offer the best returns. This is a similar approach to the one we have taken with Surface, which has been very successful. Phones remain a critical component of the Microsoft device portfolio and an important piece of our mobility strategy, but a restructuring is in order.”

Apparently, Microsoft is cutting down on its investment in Windows Phone and the Mobile platform as a whole. As explained in the original article about the layoff, the effort to scale down its devices portfolio is to let other make Windows Mobile devices. So, the Lumia line is now what the Surface is, consistent with what its users been asking for quite awhile now. With that being said, the fate of the mobile division as a whole is still in doubt, and your guess is as good as mine. For me, I will enjoy what Microsoft will provide in the mobile section for the next two years, and we’ll see what happen then.

Source: ZDNetBloomberg BusinessWeek

Via: Windows Central


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