Microsoft relies on Samsung and HTC cash to peddle Windows Phone

FLOUNDERING SMARTPHONE DESIGNER Microsoft has resorted to relying on handset makers to spend more money promoting devices running its Windows Phone operating system in stores.

Since Microsoft launched its Windows Phone 7 (WP7) operating system sales have been far lower than expected. Initially Microsoft said it would spend $400m on advertising WP7 handsets but that clearly didn't work, as its market share continued to erode.

Now the Redmond company has looked to Samsung, HTC and Nokia to do their bit to boost sales.

Andy Lees, president of Microsoft's mobile unit told Bloomberg that Samsung and HTC have committed to increasing marketing budgets for Windows Phone devices. Although Microsoft has no say in how the firms spend that money, Lees said some will go towards telling retail staff to recommend Windows Phones models, especially with Windows Phone 7.5 gadgets hitting the market in the coming weeks.

Microsoft needs staff at mobile phone shops to point out the existence of Windows Phone devices. Whereas Apple has its highly polished marketing machine and Google's Android has both features and the sheer number of devices going for it, Windows Phone handsets have little to shout about.

Michael Gartenberg, a Gartner analyst told Bloomberg, "If you went to store they showed you anything other than a Windows Phone. If you asked for a Windows Phone, they tried to talk you out of it." Usually you can't rely on the advice given to you in consumer electronics shops but in this case we'd have to say the salespeople were right on the money.

Realistically, Microsoft's last chance to make a dent in Apple and Google's mobile aspirations is with Windows Phone 7.5. While the operating system is generally well regarded, many still believe it lacks the killer feature that will help it overtake the considerable leads held by its rivals.

Microsoft's hope that spending a load of cash to persuade shop assistants to recommend Windows Phone will increase sales should be a warning to customers to take whatever advice is given in stores with a healthy dose of salt. µ