Microsoft’s mobile division has been in a slump with the failure of the Kin. Windows Phone 7 was supposed to drag the company out of the slump and back into the game. However, recent reports seem to reveal that things are not going as well as the company hoped for.
Seven months back, Microsoft halted production of the Kin mobile device only six weeks after launch. It was declared to be the biggest mobile flop of all times by critics. The company then shifted all of its weight behind Windows Phone 7 by spending nearly a quarter of a billion dollars just to market the device.
Despite a somewhat successful launch when compared to the Kin, the device has been slow in ramping up in sales. Just last month, Microsoft revealed that the company shipped 2 million Windows Phone 7 devices to retailers. However, LG, the manufacturer of the device, expressed concern over the phone’s launch sales numbers.
It appears that Windows Phone 7’s market share is now on the decline. According to eWeek, comScore reports that Microsoft’s smartphone market share took a dive by 1.7 percent from October 2010 to January 2011.
The company’s market share went from 9.7 percent to 8.0 percent. In contrast, the market leaders Google (31.2%), RIM (30.4%) and Apple (24.7%) still maintain a large percentage of the market.
Microsoft defended the phone’s sales figures by stating that the sales performance of Windows Phone 7 is similar to other first-gen mobile platforms. The company also stated that it will take time to build awareness and interest.
ComScore’s report seem to indicate that Microsoft’s massive marketing strategy isn’t working as the device’s market share continues to decline over time. It will be interesting to see if things pick back up next quarter or if it will continue to dip.