Microsoft's Mobile Roller-Coaster Ride: 9 Contributing Factors - InformationWeek

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4/28/2016
07:06 AM
Kelly Sheridan
Kelly Sheridan
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Microsoft's Mobile Roller-Coaster Ride: 9 Contributing Factors

Microsoft has never excelled in smartphones, but its mobile strategy has taken a turn for the worse. What went wrong, what will come next, and are there signs of hope? Here's a closer look.
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Phone Division Restructure
In July 2015, CEO Satya Nadella made a major decision to clarify the future of Microsoft's smartphone business, and reorganized a division that had transformed itself into a disaster.
Nadella wrote a letter to employees explaining the need to fundamentally restructure Microsoft's mobile division 'to better focus and align resources.' This restructure involved a wave of layoffs that eliminated 7,800 jobs, specifically within the phone business.
As part of this announcement, the company recorded an impairment charge of $7.6 billion related to assets associated with its Nokia acquisition. It also took a hit of $750 million to $850 million in restructuring charges. The decision to restructure was expensive, but necessary since the Nokia acquisition caused Microsoft to lose money consistently after the purchase took place.
(Image: Microsoft)

Phone Division Restructure

In July 2015, CEO Satya Nadella made a major decision to clarify the future of Microsoft's smartphone business, and reorganized a division that had transformed itself into a disaster.

Nadella wrote a letter to employees explaining the need to fundamentally restructure Microsoft's mobile division "to better focus and align resources." This restructure involved a wave of layoffs that eliminated 7,800 jobs, specifically within the phone business.

As part of this announcement, the company recorded an impairment charge of $7.6 billion related to assets associated with its Nokia acquisition. It also took a hit of $750 million to $850 million in restructuring charges. The decision to restructure was expensive, but necessary since the Nokia acquisition caused Microsoft to lose money consistently after the purchase took place.

(Image: Microsoft)

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tjgkg
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tjgkg,
User Rank: Ninja
5/2/2016 | 5:57:26 PM
No compelling reason to use MS Mobile
Microsoft's committment to any mobile platform has been iffy at best. They were late to the PDA market and when they finally came in, their platform was decidedly inferior to Palm. Their apps were never very good and they took up major resources on the devices as compared with Palm (and even Apple for a while way back then). Almost the same thing happened in the smartphone market. They just seemed halfhearted when they joined the party. There is no compelling reason to jump from Android and iOS to MS.
dsangi01
50%
50%
dsangi01,
User Rank: Apprentice
4/29/2016 | 11:52:10 AM
APP Store Weakness is MS downfall
I have owned several Windows Mobile Devices over the years, the latest one being a Lumia 1020 and now a 950. While I love the phone and its features as well as the integration with Windows 10 desktop, the lack of great apps frustrates me on a weekly basis.

My next phone will most probably still be a windows phone but I really hope that MS can entice some of the more main stream APP producer to create APPS for their platform.
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