In lieu of actual first day US sales numbers from Microsoft, everyone seems out to predict doom and gloom for its Windows Phone 7 platform. Microsoft may have sold as little as 40,000 phones, a a4Amarket research sourcea4 tells the financial site TheStreet. Meanwhile, CNet reporters noted that a San Francisco T-Mobile store didna4a4t have much luck pushing their WP7 wares.
While Ia4a4m normally one to eagerly follow launch numbers as well, Ia4a4ve become increasingly convinced that for this particular product launch, the actual first day sales dona4a4t matter.
Why Because Microsoft is in this for the long haul. It doesna4a4t matter if Windows Phone 7 sales were poor (not likely), or if they were off the charts (although we would have heard by now if they were). Microsoft is going to dump as much money, time, and energy into the platform as necessary to make it relevant again in the mobile market. It has to succeed, otherwise it will lose its mobile presence completely.
Failure isna4a4t an option since competitors like Apple and Google are raking in billions from their mobile endeavors. Google announced last month that ita4a4s making $1 billion a year from mobile ads (a number which could double or triple by next year). Apple, meanwhile, made $8.6 billion from sales of the iPhone this quarter, and ita4a4s set to gain a bigger chunk of the mobile advertising market when its iAd mobile advertising service hits the iPad this month with the iPhone OS 4.2 update. In addition to landing on the iPad, Apple is also working on bringing iAd worldwide &8212' ita4a4s been restricted to the US and UK thus far.
And as much as the company is ridiculed, Microsoft isna4a4t stupid&8230' Okay, the Kin phones were stupid. But Windows Phone 7 isna4a4t the Kin. This time around Microsoft has multiple carriers, multiple hardware partners, mature software, and perhaps most importantly, it has a plan. Ita4a4s marketing the phones directly to consumers who seem to despise iPhone and Android user habits (see, the a4AReallya4 ad), and therea4a4s still a significant population that hasna4a4t yet committed to either camp.
Microsoft will likely also take advantage of RIMa4a4s inability to keep up with Apple and Android. Dell just recently announced that ita4a4s dumping 25,000 BlackBerrys company-wide and is opting for Windows Phone 7 and Android devices instead. Practically every independent quarterly sales report we cover notes RIMa4a4s declining sales, and RIM doesna4a4t have any flagship smartphones on the horizon to replace its undercooked BlackBerry Torch.
In my testing, WP7 devices unquestionably offer a better consumer experience than anything RIM has to offer, and Microsoft is also aiming for business users with the best Office integration on any mobile platform. If RIM continues at its current rate, I wouldna4a4t be surprised to see Microsoft shipping more phones than RIM by this time next year.
Microsoft has already committed $500 million to marketing Windows Phone 7, and I suspect that number will reach even more obscene levels throughout 2011. Microsoft may not always be first to the market with innovation, but it has a habit of persevering until it achieves some sort of success. Take the Xbox, for example. Microsoft lost $4 billion on the first generation Xbox, but then the Xbox 360 went on to find success in this most recent console generation and earned the company $20 billion as of January 2010.
Similarly, but less successfully, Microsoft preserved with its Zune music players &8212' which led to the slick-looking Zune HD, and ultimately to Windows Phone 7a4a4s user interface.
Microsoft likely isna4a4t aiming for the number one smartphone spot. Even if it managed to push out more devices than Apple, it could never keep up with Androida4a4s sheer ubiquity. But placing second, or even third, is certainly better than not being in the game at all. And you can rest assured that Microsoft will do whatever it takes to regain its mobile relevance &8212' no matter what the numbers say about Windows Phone 7a4a4s launch day sales.
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Companies: Apple, Google, Microsoft, RIM
Companies: Apple, Google, Microsoft, RIM
Devindra Hardawar is VentureBeat's lead mobile writer and East Coast correspondent. He studied philosophy at Amherst College, worked in IT support for several years, and has been writing about technology since 2004. He now lives in Brooklyn, New York. You can reach him at devindra@venturebeat.com (all story pitches should also be sent to tips@venturebeat.com), and on Twitter at @Devindra.
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