Microsoft’s Windows Phone 7 market share takes a dive

March 8, 2011

Microsoft's Windows Phone 7 market share takes a dive 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.

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8 Responses to “Microsoft’s Windows Phone 7 market share takes a dive”

  1. Argon:

    very misleading title for article, because its not Winodws Phone 7 that is taking dive but old Windows Mobile. How can a marketshare of something take a dive if it just hit the market, WP7 that is. All statistics point that Windows Phone 7 share is growing. Now if you account for all the consumer handheld OSes that Microsoft makes yes its loosing share because of old Windows Mobile going away. I predict that marketshare will stop declining and slowly begin accelerating back up by May/June

  2. David C:

    To Argon: The article is accurate.

    Windows Phone 7 is taking a dive.

    If Windows Phone 7 was rising as Microsoft wanted, then it would have increased Microsoft’s total sales.

    Because Microsoft’s total mobile sales are falling, then something is wrong. It means that Windows Phone 7 is not selling very well.

    So, nice try at trying to put this in a positive light. However, the statistics show that Windows Phone 7 has become a flop.

  3. Alberto Goncalves:

    @Argon:

    I predict that WP market share will stay or decline from its current position. If WP7 was really growing, the numbers should’ve been increasing, slowly maybe, but increasing NOT decreasing…

    Cheers,

    AG

  4. TheOtherGeoff:

    “Microsoft’s smartphone market share” The problem with Microsoft is that its ‘strategy’(?) has been to release a series of incompatible mobile platforms, all trying to be ‘windows for the phone’ Until ov course now, which is more like Zune for the phone.

    I will agree that sales will accelerate… but marketshare… my guess will stabilize or continue to decline, as the ecosystem(s) of android becomes the more cost efficient model for phone makers/carriers to support against the Apple iOS ecosystem.

    Microsoft has to ‘sell’ it’s OS, or buy partners (nokia). Google is just putting out a reference architecture, and scrape in advertising and information revenue.

    Bottom line… until Microsoft realizes that it has to develop a compelling architecture and strategy AND fundementally change it’s business model away from the ‘we are the center of the windows world… pay us for the privilege of our software,’ it’s ‘consumer’ grade personal device (PCs, tablets, phones, media) sales will dissolve relative to the market, and this will erode it’s hold on the corp environment to the point that they will evolve to where IBM is today… effectively just managing ‘data center iron,’ and selling corporate software (e.g. .Net dev tools)

  5. Tim:

    Uh Im just here for the free refreshments. I use Android.

  6. Clate:

    http://pocketnow.com/windows-phone/wp7-marketplace-hits-10k-apps-faster-than-anyone

    nough said. Its gonna keep growing. It will catch up sooner or later.

  7. Gerald:

    Windows Phone 7 is destined to fail unless Microsoft adds back in the capability to sync with Outlook. Currently ALL other phones can do this EXCEPT Windows Phone 7. I was all ready to buy one until I found this out. I am still ready — if Microsoft can add this capability back anytime this year I’ll buy one. If not, I’m moving over to Android or Blackberry (they both DO sycn with Outlook, along with Iphone and the current Nokia phones).

  8. Bill:

    Compared to Apple or Android, WM7 looks like crap. Microsoft also screwed all users that had WM 6.5 by not giving them the choice to upgrade. I don’t see WM surviving in the wireless market too much longer. Google has taken control of the market.

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