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Technology Stocks : Microsoft: The Devices and Consumer Segment
MSFT 453.55-0.3%Jul 12 4:00 PM EDT

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To: Eric L who wrote (134)7/9/2015 10:57:02 AM
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Bloomberg says Microsoft expects to "make its own phones for at least the next two years"
Written by Hammad Saleem on Thursday, Jul 9th, 2015 at 02:47AM @hammadsalim

Yesterday was a little shocking for Microsoft as the company let go of 7,800 employees globally, and wrote down billions of dollars related to the acquisition of Nokia's devices and services division. The company acquired Nokia last year for over $7 billion and things didn't get better with Windows Phone in the competitive mobile space dominated by Android and iOS. Speculations also arose hinting at the demise of Windows Phone after the announcements, but it seems that may not be the case.

According to a new report from Bloomberg, Microsoft expects to manufacture phones for at least next two years, citing people familiar with the plan who wish to remain anonymous. Bloomberg reported,

"The company expects to make its own phones for at least the next two years, said a person familiar with Nadella’s plans who asked not to be named because the plans aren’t public. Microsoft will try to play up its strengths in the markets it has chosen, such as corporate security and collaboration software for business customers."

Microsoft is also expected to change its strategy as well. Instead of selling as many phone as it can, the company will focus on three categories: business phones, high-end models and value phones. The budget-friendly Windows Phones, such as the Lumia 520, has received its fair share of success and is the best-selling Windows Phone handset.

The report says that the Redmond-based company will scale down its business by launching one or two handsets in each of the three categories, as well as say exit carrier relationships and countries where the company's handsets didn't show much growth. As you know, the company has a handful of versions of a same handset in different locations, an approach which is expected to discontinue in the future. The company is expected to adopt the Surface approach, which is to "reduce the target area and try to stand out from the crowd in a smaller field."

It's been a while since Microsoft released a new flagship device. Reports suggest that Microsoft is working on high-end Windows Phone handset which is expected to see the light of the later this year, possibly at the IFA 2015 in Berlin. Rumors hint at the Lumia 940 being in works, but there's no official word from Microsoft about its launch. Windows 10 Mobile is expected to see the light of the day later this year, possibly in September/October.

Lets see what the future holds for Windows Phone.
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