New York — In a major thrust to get its mojo working in wireless devices, Microsoft Corp. on Monday in a last-ditch attempt unveiled a new line of Windows-based smartphones and other technology, much of which will have voice, video and data service from Dallas-based AT T, which has won favorable early reviews, but it may come too late to claw back customers from Apple Inc and Google Inc. — this is the latest attempt by a rival company to challenge Apple’s iPhone.
The Redmond Vole, of course, is the big bad wolf when it comes to desktop computers. But it has struggled to dominate the wireless software arena in the same way that it has desktops. The world’s largest software monopolist, along with network carriers and handset makers, is planning to spend more than $100 million on marketing the phones, which analysts said could compete with Apple’s iPhone, but that may be a struggle.
Monday’s announcement is a big move to fix that.
The new Windows Phone 7 is seen at the Windows Phone 7 launch news conference in New York, October 11, 2010. (Credit: REUTERS/Jessica Rinaldi)
“We are the first to concede that Microsoft is competing for third place, not first or even second, at this point; but we assume that this is a key step toward restoring confidence in their ability to innovate in mobile,” Wells Fargo analyst Jason Maynard said in a research note.
“This is not going to shake the market share needle in the short term.”
“They have phones with slide-out keyboards, larger screens, high definition outlets — all aspects that the iPhone does not have,” said Ross Rubin, a consumer electronics analyst at retail research firm NPD Group. “That should help Microsoft’s competitive position. There will always be a segment of customers that seek out the newest devices.”
The selection of nine new phones comes from handset makers including Samsung Electronics Co. Ltd., LG Electronics Inc., HTC Corp. and Dell Inc. will start to appear in stores later this month in Europe, and in November in the United States on AT T Inc.’s network.
AT T will carry three phones that use Microsoft’s Windows Phone 7 operating system. Moreover, AT T and Microsoft are teaming up to let consumers watch popular television shows when and how they want to. That includes a wireless offering featuring — drum roll please — software pre-loaded on phones that run on Windows Phone 7.
The new handsets are much closer in appearance to Apple’s iPhone than earlier Windows phones, with a colorful touch-screens and “live tiles” on the starting screen for quick access to email, the Web, music and exclusively, games on the Xbox system.
“The user interface is quite advanced because it takes advantage of those precious few seconds when eyes hit the glass and actually gives you something useful,” said Al Hilwa at research firm IDC. “It will probably be copied by other platforms over time.”
The new phones portrays Microsoft’s last chance to catch up in the smartphone market with rivals who overtook it in the past few years.
“I have been looking forward to this day for some time,” said Microsoft Chief Executive Steve Ballmer, showing off the nine phone models at a launch event in New York.
Ballmer, who has conceded that his company “missed a generation” with its recent unpopular phone offerings, said the new phones would eventually be available from 60 mobile operators in 30 countries.
The first phone from AT T, priced at $200, will be available on November 8, said Ralph de la Vega, CEO of AT T Mobility and Consumer Markets. Some phones will be available October 21 in Europe.
AT T will give the phones ample room in its stores for promotion. “We are expecting these to be really big sellers,” said Jeff Bradley, AT T’s senior vice president for Devices.
“This is a marathon, not a sprint. They are not going to change their position today or in the next month,” said Michael Gartenberg, an analyst at research firm Gartner. “But they have established themselves as a credible player.”
Microsoft did not give any sales forecasts for the new phones. The Redmond-based world’s largest software maker, has just 5% of the smartphone market, compared with 17% for Google’s Android platform.
Moreover, worldwide sales of smartphones will rise 56% in 2010, according to research company Gartner. Sales of personal computers are expected to rise 19%.
While entering the fray earlier this year, Microsoft pulled its Kin phone less than three months after the launch. The Kin was aimed at teenagers.
Find out more on the smartphones that AT T is handling here. For info on new ways to watch your fave shows, go here. View SlideShow Here.