When Microsoft announced job cuts in the Windows Phone sector, speculations began that the downsizing of the mobile team means that Microsoft has given up on its mobile project. Some people went to the extent in reading between lines that they pronounced Microsoft Windows Mobile is dead.
Countering the speculations, Microsoft has announced that the downsizing of the Windows mobile phone team does not, in anyway, mean that it is giving up on the mobile phone sector. Rather, they are trying to focus on building a better portfolio by manufacturing phones that would capture a good market segment.
Microsoft had recently announced 7800 job cuts in the Windows Mobile Phone sector and proposed to write down of a huge amount of money on the project. This had led many to believe that Microsoft is giving up on Windows mobile phones. On the contrary, talking at investors’ meet, Microsoft made it clear that the downsizing was to focus better on building a portfolio of phones that are able to sell good in the mobile phone market. The write down on money was to put it on better tracks – by outsourcing manufacturing process of handsets for Windows Mobile.
Microsoft is teaming up with different local manufacturers in different countries to produce cheaper and efficient Windows Phone handsets. The focus is on better delivery and after sales while its own plant will be working on producing some quality handsets – in line of Lumia – to keep the manufacturing overheads minimum while providing better service.
Kevin Turner, the Chief Operating Officer (COO) of Microsoft said:
“So make no mistake; we’re not giving up on phones, we’re resetting for profitable growth, and we will continue to innovate in that space, and it remains a very important part of the portfolio”
That puts all speculations to rest while sending mobile analysts back to their databases so that they can compare the market inclination in a year from hence.
