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5/16/2012
10:26 AM
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Microsoft's Mobile Share Plunges 27% As Phone Sales Cool

Worldwide mobile phone sales down 2%, but market leaders Samsung, Apple and Google continue to gain share.

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In the latest sign that Microsoft's high-stakes bet on a new, unconventional mobile platform isn't paying off, numbers released Wednesday show that Redmond's overall share of the wireless operating system market fell 27% in the first quarter, to a meager 1.9%.

Its partner Nokia also saw significant market erosion during the period. RIM was also hit hard, according to Gartner.

Samsung led the mobile hardware market, with a 20.7% share, while Google's Android OS was the top mobile OS, with a share of 56.1%. Apple, third in hardware with a share of 7.9%, was the second leading mobile OS developer, with iOS capturing 22.9% of the market, up from 16.9% year over year.

Microsoft and Nokia weren't alone in feeling the pinch, as worldwide mobile phone sales contracted 2% compared to the previous year. Gartner said it's the first time that the market experienced a quarterly decline since the second quarter of 2009.

[ Is Windows Phone 7.5 worth the upgrade? See: 7 Hottest Features In Windows Phone 7 Mango. ]

"Global sales of mobile devices declined more than expected due to a slowdown in demand in the Asia/Pacific region," said Gartner analyst Anshul Gupta, in a statement.

"The first quarter, traditionally the strongest quarter for Asia, which is driven by Chinese New Year, saw a lack of new product launches from leading manufacturers, and users delayed upgrades in the hope of better smartphone deals arriving this year."

Although the market was sluggish overall, it was mostly generic, "white box" manufacturers that saw declines. Microsoft and Nokia, along with Research In Motion--Blackberry OS's market share fell 47%, to 6.9%--were the only major market participants to see significant fall offs in share.

Microsoft introduced its Windows Phone OS in late 2010, and has since spent billions of dollars developing and marketing the platform. It's also paying Nokia billions to help the Finnish phone maker port its entire smartphone line to Windows Phone. To date, those moves aren't panning out.

Windows Phone's Metro interface, which offers a home screen divided into blocks called Live Tiles instead of the standard, icon-based GUI, has been well received by some critics. But others believe it's simply too much of a departure from what consumers, conditioned by the iPhone and Android, have come to expect from a mobile interface.

The first quarter numbers do not include sales of the flagship of the Windows Phone line, the Nokia Lumia 900. The Lumia 900, which offers high-end features such as Carl Zeiss camera optics, launched in April amid a high-profile marketing push that featured Nicki Minaj.

Analysts will watch closely to see if the Lumia is able to reverse Microsoft and Nokia's mobile slide in the second quarter. If not, some might conclude that Microsoft's Windows Phone gambit has failed.

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Gideon
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Gideon,
User Rank: Apprentice
5/21/2012 | 7:47:44 PM
re: Microsoft's Mobile Share Plunges 27% As Phone Sales Cool
Do not blame Paul. His paid to bash Microsoft. Like someone wrote, he is the most uninformed writer on the Internet!
hohum
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hohum,
User Rank: Apprentice
5/17/2012 | 10:24:00 PM
re: Microsoft's Mobile Share Plunges 27% As Phone Sales Cool
Yes with the below comment....
"Microsoft introduced its Windows Phone OS in late 2010, and has since spent billions of dollars developing and marketing the platform. It's also paying Nokia billions to help the Finnish phone maker port its entire smartphone line to Windows Phone. To date, those moves aren't panning out."
They are not porting any OS? 3 newly designed phones for WP and
meltemi being developed, harmattan( future design platform)
symbian to phase out.

Quite possibly the most uninformed writer on the internet.

but my apologies if you just got you first internet service with your iphone

Paul Aldige Katz
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Paul Aldige Katz,
User Rank: Apprentice
5/17/2012 | 3:32:39 PM
re: Microsoft's Mobile Share Plunges 27% As Phone Sales Cool
This is like the fourth article I've read in May that cites concerns about Windows Phone marketshare without taking into account the large increase of sales the platform has been seeing since the launch of the Lumia 900. (there's a small mention at the very bottom of the article).

There's a lot of Microsoft haters out there who use outdated stats to try to discredit a good platform.
moarsauce123
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moarsauce123,
User Rank: Ninja
5/16/2012 | 5:39:08 PM
re: Microsoft's Mobile Share Plunges 27% As Phone Sales Cool
Another sign that Paul McDougal is an idiot who does not understand Windows Mobile handsets were still being sold in Q1 2011.
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