Microsoft CEO Nadella made it clear at the Surface3 conference that the company has not succeeded in mobile phones and tablets. Nadella recognized the reality, but the crux of the matter is, is there still a chance for Microsoft in the hardware field?
This week, Microsoft released the third generation of Surface tablets. The market's first reaction to SurfacePro3 is not bad. FBR Capital Markets analyst Daniel Avis said: "This is Microsoft's best move in the right direction, its market share will definitely grow. Microsoft is now in an unfavorable situation, but we must believe in Nader Pull can speed up the company's competition for market share."
But the facts before Microsoft are still cruel: In the field of tablet PCs, the Surface, which has been on the market for more than two years, is still losing money. Only less than 2% of the market share can not only shake the leadership of the iPad, but even be Samsung, Lenovo. Such as manufacturers open; in the field of smart phones, Microsoft's heavyweight WP system, only 3% of the market share, and after the acquisition of Nokia, has not been able to come up with a heavy product.
Although Microsoft CEO Nadella has developed a new strategy of "mobile and cloud computing priority", it clearly pointed out at the Surface3 conference that the company has not succeeded in the field of mobile phones and tablets. Nadella recognized the reality, but the crux of the matter is, is there still a chance for Microsoft in the hardware field?
Mobile battlefield Microsoft is struggling
"$500, fully subsidized by the operator?! That is the world's most expensive mobile phone, it will not be attractive to corporate customers, because it does not have a keyboard." This is Ballmer's comments on the iPhone.
Foreign media believe that there may be no more harm to the Microsoft mobile business than Ballmer's short-sightedness. When Apple released its first iPhone, Microsoft’s attitude of “dismissal†gave itself a bitter fruit. When smartphones became more popular, Microsoft had to copy the iPhone's operating system and its business model, first launching WP7, then releasing WP8, first strategically cooperating with Nokia, and then acquiring, but it was too late.
According to the latest data from market research firm Canalys, in the first quarter of 2014, 81% of smartphones were running Android, and iOS and WindowsPhone accounted for 16% and 3% respectively. According to vendors, Samsung accounted for 34.9% of the total. The second time, 13.9%, Lenovo ranked third, reaching 7.5%, Huawei, ZTE, LG, etc. are on the list, and Nokia is missing.
It can be seen that whether it is an operating system or a hardware device, Microsoft has been completely squeezed out of the first camp, and the distance from the market leader continues to widen.
Like smartphones, market research firm IDC latest data shows that in the first quarter of 2014, iPad market share declined, but still ranked 32.5% in the market, Samsung grew to 22.3%, Asus, Lenovo, Amazon Three to five, Microsoft Surface is not among the top five tablet manufacturers in the world.
CanaccordGenuity analyst Michael Walkley believes that in the mobile device market, the advantages of Samsung and Apple are already very obvious, and other manufacturers as competitors are in a position to continue to compete. This phenomenon is like the famous "Matthew effect", that is, the stronger the stronger, the weaker the weaker. In terms of equipment, Apple and Samsung formed a duopoly situation. In terms of operating system, Google and Apple monopolized. Although many other manufacturers have made efforts, they can only occupy a small share, even a giant company like Microsoft.
So, what opportunities have Microsoft left in the hardware field?
At present, Microsoft's most influential products in the hardware market may be Xbox game consoles. Microsoft, Sony and Nintendo are in a three-legged situation in the game console market, but compared to smartphones, tablets and other devices, the game console market The scale is still relatively different. Therefore, leaving Microsoft with a relatively large imagination, it seems that only the field of wearable devices is left.
A number of research institutions are optimistic about the market for wearable devices: CNIT-Research believes that sales of wearable devices will exceed 100 million units in 2017; research firm Displaybank estimates that from 2014 to 2016, wearables will wear sales Maintaining a growth rate of more than 90%, the market for wearable devices is expected to reach $22.7 billion by 2020.
From this year's CES and MWC, it can be seen that wearable devices have emerged from the role of the past two years, and gradually became the protagonist of the show, many manufacturers have demonstrated wearable devices. Therefore, some analysts believe that if you want to regain prestige in the field of consumer technology, Microsoft must focus on the future, and wearable devices is a major opportunity that it should seize.
At present, major brands such as Apple, Google, Microsoft, and Samsung are paying attention to the wearable device market. However, IDC's latest market research report shows that wearable devices, including sports wristbands, will grow substantially in the next four years, but due to the current lack of applications, the golden period has not yet reached.
It can be seen that the current market for wearable devices is in its infancy and there is no clear winner. This is undoubtedly a huge benefit for Microsoft. In this new field, Microsoft does not need to chase the leader in the role of a chaser, because once the product is successful, it will become the leader itself, after all, there is no such a classic product.
At Microsoft's latest earnings conference, Nadella said: "When it comes to new opportunities, from wearables to the Internet of Things, we hope that Windows can participate in all of this." The patent for exposure also shows that Microsoft is developing a smartphone product. . From these, it can be seen that Microsoft is ready to fully embrace wearable devices. Together with Microsoft's own hardware manufacturer, Nokia, there is a chance to realize the perfect software and hardware in the future like Apple in the field of smart phones. Combine.
For Microsoft, the strong capital is its advantage, and it can fully invest large-scale funds for the development of wearable devices. Perhaps this upfront capital investment may be as high as several billion dollars, but once successful, the fruits of victory will bring greater benefits to Microsoft.
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