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AnchorDesk

David Coursey
Why MS hasn't taken over cell phones--yet

David Coursey
Executive Editor, AnchorDesk
Wednesday, Feb. 25, 2004
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If Microsoft is so invincible, why hasn't it sold more phones running the company's Windows Mobile Smartphone OS? After years of development and even a few years on the worldwide market there are, at this moment, precisely two such models available in the U.S.: the Motorola MPx200 and the Samsung i600.

Two MS-powered phones
If, for some reason, you specifically want a phone that runs a Microsoft operating system, here are two options.

Globally, the Microsoft Web site shows only nine MS-powered Smartphones available. I know there are a bunch more. But, whatever the specific number, the average customer still has a hard time finding a phone with Microsoft inside.

Alex Slawsby, recently promoted to senior analyst at IDC, estimates that Microsoft captures a whopping 3 percent of global handset share, compared to 97 percent for Symbian. From what I can tell, Microsoft is kinda-sorta OK with this state of affairs. For now, anyway.

HOW CAN THIS BE?

"Do you think we're at the beginning or the end of the wireless industry?" That's what Jason Gordon, a Microsoft Smartphone product manager responded when I outlined the facts you've just read. "We think we're just at milepost one."

Over time, Gordon and Microsoft believe that "software's the thing" that will drive wireless development. If he's right, Microsoft could someday become to wireless what it already is to desktop. While Microsoft still struggles in the enterprise, it's always done well in markets where customers touch its software directly.

So what we have here is Bill Gates placing another bet: Spending tens, maybe hundreds of millions of dollars on technology nobody wants--yet.

Of the 1.3 billion people who today own cellular phones, Slawsby guesses that 1.29999-whatever billion of them could care less what operating system is in their phone. Those that do--the previously mentioned three percent--buy Microsoft, he says. They know they're buying Microsoft and are doing so for a reason.

Microsoft's wireless strategy, for both Smartphone and wireless-enabled Pocket PC devices, is that software matters. It may not matter much today. But as people want to do more with their phones, especially in a big business context, Microsoft is counting on customers coming its way.

IN THE MEANTIME, customers who only care about buying the coolest camera/phone at the moment are buying Symbian-based devices, even if they don't realize there's an operating system inside their wireless handset.

But at some point, Microsoft believes cellular handsets will be as generic as desktop PCs have become. And then it will be the software that makes you want to buy one or the other. With its developer tools and close ties to all the other Microsoft software out there, Microsoft is counting on a win.

Microsoft's attempt to compete head-on with Symbian, with an early OS product called "Explorer," didn't fare well and was abandoned, as best I can tell. If Microsoft had really wanted to compete in today's mass-market handset space, they would doubtless be pouring the kind of effort into it that Xbox receives.

That's not happening and Smartphone is moving slowly. In addition to the two phones cited above, Motorola has just announced a new model, the MPx100, due later this year. It'll include a camera, Bluetooth, the latest version of the OS, and a sleek candy bar design.

THE MPX200 is a great phone, and, if you don't have issues with using AT&T Wireless as your carrier, I recommend the device. As I've said before, there are things I don't like about the Motorola, like the shiny black Darth Vader finish, but in several months of use I've learned not to cringe when I look at the device.

I'm not using the wireless e-mail or other Internet features of the phone. What I do use--and love--is the tight integration with Outlook, along with the phone's simplicity. To find a name, I just start typing it in, using the letters on the telephone keypad. I press a number key once, regardless of which of the three or four letters assigned to it I need--pressing "1" equals a, b, or c, etc. The phone then quickly narrows the choices: Even with a 700-name phone book, I usually get to the right entry in four or fewer keystrokes. Or I can dial what I know of the phone number and search that way.

Also, the phone links to my Outlook calendar--not as important to me as the phone book, but still useful to have on a busy day.

With the MPx200, I don't refer to my PDA nearly as often as I used to. Now if they can just find some way around my needing to wear my glasses to enter a name using the keypad.

What do you think? Do you know what OS your cell phone uses? Do you care? TalkBack to me below! 

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