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Microsoft halts smartphone marketshare decline with Windows Phone 7

$400m is finally starting to pay off
Tue Aug 23 2011, 13:40

SMARTPHONE DEVELOPER Microsoft has managed to stem the slide of Windows Phone 7 (WP7) smartphone operating system market share in the US, according to analyst outfit NPD Group.

NPD Group's figures for US smartphone sales in the second quarter of 2011 holds few surprises, with Google's Android marginally increasing its share of the pie to 52 per cent and Apple's IOS experiencing a similarly small gain up to 29 per cent. In the past those gains would be at the expense of Microsoft's dead Windows Mobile operating system and its latest money hole WP7, however NPD's figures show that Microsoft's market share held steady.

Since Microsoft launched WP7 at the tail end of 2010, the company has been tight lipped on sales figures, though it was widely reported that Microsoft spent the best part of $400m advertising WP7 devices. Smartphone sales figures had shown Microsoft's efforts were in vain as its share of the smartphone market was slowly being eroded away thanks primarily to Google's Android, however finally someone has reported that WP7 has held its ground.

Although Microsoft has managed to halt the decline, the truth is that WP7 is near rock bottom as it is. NPD reports that Windows smartphones, which includes both WP7 and Windows Mobile, made up just five percent of units sold in the second quarter.

It's not all doom and gloom for Microsoft, however. The company will be eyeing Android's 52 per cent market share as a potential gold mine as tries to flog licences for Google's operating system to device manufacturers, claiming Android infringes its patents. µ

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Comments
Research costs money

C'mon, patents arms race. If company A invents something after throwing a few million into research, why can they not collect licensing fees for that? That patent system may be a bit misunderstood, but I think anybody should be able to believe that investment == reward. Why exactly would anyone (Microsoft in this case) invest heavily in research if any Tom, Dick or Dick (Google or its "open source community") could grab their idea and profit from it without recourse?

posted by : leigh, 31 August 2011 Complain about this comment
Make them cheap enough

Some places have been advertising WP7 phones for 1 cent, with a contract. So it's not surprising they increased market share - the same way HP grabbed tablet marketshare last weekend.

posted by : slap, 24 August 2011 Complain about this comment
@reader

per cent is accepted UK spelling ... as regards the article and owning both an Android low end smartphone and iPad, I'm currently see both ends of the market well provided for and a two horse race/future

posted by : ajl, 24 August 2011 Complain about this comment
...halting the slide gets easier the closer to 0% you get

...as you get closer to 0% market share, it becomes easier to stop the slide... ;-)

posted by : JHLundin, 24 August 2011 Complain about this comment
no negative market share?

So windows phone 7 got MS to 0%? Because thats the only way this tide is stopping. You cant have negative market share unless you pay people to use your crap.

posted by : Miahac, 23 August 2011 Complain about this comment
bad way to spin numbers

The word is "percent" and not "per cent", how can you call yourself an writer?

I'm sure the number of Windows smartphones is falling but implying that WP7 is in decline is not true. WP7 has only been going up since its launch last October. WinMo and WP7 should be counted separately.

posted by : reader, 23 August 2011 Complain about this comment
How Accurate is this Article?

I always wonder about the accuracy of these types of articles. Is Microsoft's "decline" in market share really due to WP7? Or is it really because people are dropping PREVIOUS Microsoft phones (Windows Mobile 5 and 6)? WinMo 5 and 6 should not be lumped together with WP7 because they are so so so different.

posted by : Erasure25, 23 August 2011 Complain about this comment
patent arms race

I like WP7 and I plan to switch to one. But claiming Android infringes its patents, really come on! The ‘patent arms race’ is killing innovation!
Microsoft lawyers are already in court arguing that Motorola’s Android phones infringe its technology.

posted by : GLR, 23 August 2011 Complain about this comment
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