Microsoft announced the results of its fiscal third quarter last night, but the press release doesn’t mention Windows Phone at all, not even once. So I turned to the earnings report conference call transcript (which you can download in Word format) to see what, if anything, the company said on the record about Windows Phone performance during the quarter.
It’s not much. The company certainly hasn’t provided any updated Windows Phone sales figures. Last we heard was “over 2 million” back in January.
Here’s what they did say.
PETER KLEIN, CHIEF FINANCIAL OFFICER:
In November, we took the first step in creating a new mobile ecosystem by launching Windows Phone 7. And this quarter, we took the next step by entering into a broad strategic alliance with Nokia. Together, Nokia and Microsoft will innovate with greater speed, and provide enhanced opportunities for users and partners to share in the success of the new ecosystem.
BILL KOEFOED, GENERAL MANAGER INVESTOR RELATIONS:
Turning to Windows Phone. Product reviews are good, customer satisfaction is high – well above 90% – and we have shown a clear strategy for enabling a vibrant ecosystem around Windows Phone. This quarter, we took the next step and entered into a broad strategic alliance with Nokia. While we have enjoyed strong developer support to date with more than 13,000 apps, we’ve noted even greater developer interest subsequent to the Nokia alliance announcement.
And that’s it.
In the PowerPoint presentation that accompanied this call, the word “phone” doesn’t even appear once Windows Phone is only mentioned once.
Now, there was a Q & A that isn’t transcribed in this document, so it’s possible that someone did ask about Windows Phone. But I doubt it: It seems like most of the press was too caught up in the feeding frenzy of a slight but easily explained dip in Windows division revenues to even bother with such a question.
Why the continued silence Microsoft?
Paul, have you ever considered that in the real scheme of things, Windows Phone plays a small part (at the moment) at MSFT and everywhere else? If the partnership with Nokia change things, then perhaps we can expect to hear a lot more from MSFT and the press. I think as much as you would have the press write about the fantastic attributes of Windows Phone 7 (horrible marketing name) as much as they write about the iPhone (even its new color), it’s just not going to happen. Consumers are not yet so enthused, and it says something about the phone, MSFT, and its marketing.
No, I haven’t. If this company doesn’t understand that mobile (phone + tablet + PC) is the future of Windows, then they are surely doomed.
I suspect the more likely excuse for the silence is that they will not have a credible challenger in these new markets until Windows 8 happens. So they are just biding their time. This, too, is a failed strategy, but whatever.
General point taken, but on the literal side, see slide 13.
My mistake, thanks. Fixing…
I think it maybe because of low sale numbers; they sold two million licences for phones ;but that was to the OEM’s and not phones sold. And they may not want the press from the low numbers.
I read the transcript on Bloomberg, and Windows Phone is not discussed in the Q&A session either. The huge failure called Dell Venue Pro (it is “not planned to be launched” in many European countries, according to customer service) is such a nuisance that I will buy the Samsung Galaxy S II. And I am telling everybody about it. Dell, burn in hell!
God help you! Why anyone would put up with the giant turd that is Android is beyond me. The entire OS is crap. I know because Android was my first phone, and after 9 months I broke my contract and gave it back to the carrier.
But that begs the question, if you’re buying Android, why are you posting on Windows Phone Secrets?
Talking about WP7 and Nokia, you probably mentioned this hypothesis, but I think I know why Nokia does not want to confirm that the first WP7 will be released this year: they do not know if Mango will be released in 2011!!
Actually, that is an interesting point. It would certainly harm Nokia if they weren’t among the first device makers with Mango-based phones on the market.
Failure to compete properly; Someone should be fired at MS.
Zune is a better product -yet goes nowhere -mostly because they don’t try. No ads to inform customers, and few stores carry. Is there going to be a new Zune HD? Why not? Then I could use WP7 apps. Why would I buy one with no outlook?
WP7 sounds better than comp. -but I can’t get one on Verizon. Very few updates and very, very slow. Ads fail to show any real reason to buy one.
Complete lack of direction, they keep everyone in the dark. Seem to be afraid to go out on a limb.
Microsoft needs to get some balls, and get sh*t done. I thought Ballmer had balls?
FYI: I can’t add a comment in Firefox. I had to use IE.
The other problem with Zune is it’s lack of support devices. Radios, Car interface, Alarm clocks, wireless headphones.
Come on guys, its not even a year.
Give them a chance, new phone customers will go wp7,iPhone doesnt have nothing to offer anymore, remember ipad buyers are the same ipad buyers sotheres no surprise there, the msft tablets will sell in millions. So Paul relax, wp7 will not be Doomed.
Message received. But know this: That strategy did not work for Zune.
LOL! It’s not even 7 months by my count. Talk to me in 6 months to a year. If Windows Phone hasn’t made any progress by then, it’s time to worry. If Mango and Nokia don’t help, then I don’t know what the solution is.
I don’t think it’s that.
WalMart launched an online video store with much fanfare a few years ago. It went nowhere. It’s kinda like that. Companies like Microsoft, WalMart, etc. are not considered cool and don’t have the kind of appeal that companies like Apple, Netflix, Google do. For a Microsoft product to do well, it has to be revolutionary (think Kinect). And even then it doesn’t get much press. I would argue that the Kinect was much more innovative than the iPad, but guess which product gets all the press?
Anyway, one of the problems with “Windows Phone” is “Windows”. Ten years ago, the “Windows” name might have generated sales, now, I think it only reminds people of BSODs and Windows Mobile.
“Ten years ago, the “Windows” name might have generated sales, now, I think it only reminds people of BSODs and Windows Mobile.”
LOL! That must be why Windows 7 is the fastest selling OS in history, selling over 350 million licenses in 18 months. That must also be why WalMart is one of the most successful corporations on the planet. Did you even think before you made that post? Because it sounds like the typical Microsoft-hating Steve Jobs knob-slobbering BS that Apple sycophants parrot.
As for BSOD, I’ve been using Windows for 13 years, and not once have I ever experienced a BSOD, nor have I ever had a problem with viruses and malware. Why? Because I know what I’m doing.
As for the Windows Phone name, I might agree that Microsoft should have come up with a different name. But WP7 success or failure won’t be because of the Windows name.
I agree. I like Windows, what I don’t like is all the crap they added for the people who don’t know how to use Windows. If we could just get all thoese people to use Macs so the Windows users can move on to better things, in 5 or 10 years they may be ready for a Windows machine…
Unless something goes terribly, terribly wrong, new phones running Mango will be out in time for holiday sales this year. Mango might not make it out to existing phones as an update before the end of the year (they plan to, but we all know how WP updates have gone so far), but my sources have told me that the plan is to at least have the new phones out this year.
I think Microsoft is reluctant to really throw down with the current iteration of the Windows Phone OS. Is it good? Absolutely. Are there a ton of features that it’s lacking when compared to iOS? Absolutely. So they get it into the market to get some early adopters using it and generating some good word of mouth, all the while working feverishly to get a more full-featured version out the door … i.e. Mango.
I understand where they are coming from in a way… it would have been really, really bad for them to have waited another year and launched the WP reboot this fall with Mango.
This is what Microsoft should to as business strategy:
* Drop the marketing name Windows Phone 7 for only “Windows Phone” starting as today. And even market “WP”
* Bring back Outlook integration to regain Windows Mobile users back. Let them sync their Outlook data back to the phone directly via USB local sync. They will recover their huge professional and home workers market lacking an Exchange server. Give us back our tasks on the road !
* Bring back ActiveSync or something similar. Yes it sucked big time but hey, it worked. Something that lets developers use a local sync from a Windows PC to a Windows Phone. We are going to start to see more productive apps and even some PC softwares are going to research into at least one phone addon or feature.
* Bribe or pay top iPhone developers to port their apps to WP. Quality is better then quantity.
* Make a tighter integration with the Office Suite running on a PC
* Put Remove Desktop on WP for WinServer sys admins. For users let them control their PC from their phones, built into WP and directly into Windows.
* The same for Xbox, let you control the TV via the phone
* Let you control the phone from a PC once plugged in in the usb
* Drop the Zune software or at least don’t force users as the only option. I hate it, its terrible slow not even loading images for apps sometimes. I prefer a website if that is the best approach
* Deliver monthly updates for the device with at least 1 new feature, at least for the first 36 months
* Give a big discount coupon on each Windows PC that is bought for a Windows Phone. New users buys a new laptop and MS gives him a discount, like they do with office and like antivirus vendors do. By all sakes, use that you have to get market.
* The US is not the world. Start marketing outside the US and deliver the phone to more markets. Big mistake of the iPhone that only has markets in Europe and in the US as opposed to Android.
* Develop great apps only for WP, made by Microsoft unique to WP, like Sony does with games for the play station and like they do with the Xbox.
* Xbox Live network free for the first year for WP owners. Maybe I do buy then an Xbox. Just kidding.
* Integrate or make addons for absolutely all MS products, Dynamics, Messenger, Lynx, all of them should have an WP equivalent. Each MS team should release at least one WP integration of their product, this would make MS huge user base at least wonder what a Windows Phone is the first place
* Promote WP on the Internet. Where are those ads besides Cnet? Maybe send the most popular bloggers a phone for free, get the word out. Android was not promoted by Google, users did.
* Don’t allow the market of apps to prostitute in prices. Put a minimum so developers actually earn something. Honestly something paying 3$ can also pay 7$. If the app is crap you will already know this after testing it on a trial anyway. Cheap prices will not get us anywhere. I paid between 10$ and 39$ per Windows Mobile app and was happy doing it. Currently I did not found a single Windows Phone app worth paying. Not even games but again I get bored in 1 minute with games so I dont play.
The brief mention of Windows Phone seems like it would be appropriate. It’s not a runaway success at this point and hasn’t had much of an impact on the company’s earnings. From a financial point of view it is still a sideshow startup. It may be crucial to the company’s future but that future is not yet here and there isn’t enough good news (or frankly even bad news) there to warrant putting a spotlight on it.
I’m not too familiar with U.S. stock market regulations but I don’t think a company is even required to hold an earnings calls to begin with, the information that is required to be disclosed will be in the filings. And that’s another thing, this was for the 3rd quarter ending Mar. 31, not necessarily the time to lay out a detailed plan for the future of the company’s mobile strategy.
They are probably waiting until the end of the fiscal year to talk in length about the new long term project that is WP7 and the product didn’t perform well enough to earn any bragging rights to be called out for early gloating.
Maybe Microsoft is hiding some huge disaster from us all. Maybe Microsoft is playing a long game and the feeling is that it would be too early to report back on it in any detail, perhaps especially since the giant Nokia deal only just became real.
The real complaint here should be that there isn’t a lot to report on, not that they didn’t waste time reporting on something that isn’t happening.