Microsoft Corporation (NASDAQ:MSFT) held its October 26 event and introduced a lot of different products which have left many people speechless. However, we noticed that there was no mention of Windows Phones anywhere on the event. Is this a sign that the company might just leave the smartphone arena and focus on the Surface line?
Microsoft currently holds around 1% of the total market share in smartphones. The company has had one failure after the other in terms of smartphones as its Windows OS on a phone didn't appeal to many people; the low customizability when compared to Android and the complex interface when compared to the iOS.
However, the no-show on the October 26 event might indicate that Microsoft has taken this blessing in disguise as it came and decided to drop the smartphone market for good? It seems so. The company's Surface business has been doing exceptionally well and it should focus on it. The results from the tablet and PC platform have been exceptional and also converting long time loyalists of MacBooks towards it.
The Surface line has also been putting in exceptional numbers. The Microsoft Surface Pro tablet along with the Surface Book laptop combine to give the company more than $4 billion, every quarter. After the event, we can expect the Surface Studio PC to join that list. The numbers after the new product's addition might be interesting to a lot of people, including us.
We have all heard rumours about Microsoft working on a Surface Phone, which would be a direct competitor to the iPhone. However, we don't think it is something the company would consider rolling out; the rumors originated back in 2016 when the phone was supposed to succeed the Windows Lumia line. However, if the company does decide to release the phone, it might have a tough task of reeling in customers who are already loyal to other smartphone giants, including Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. Ltd. (OTCMKTS:SSNLF). Also, we don't think users would want to shell out a big chunk of their incomes on a new phone from a company with a track record of releasing sub-par smartphones.
We believe that the company should keep the Surface line in tablets and PCs as we are getting products which are a treat to work with. Instead of working on a new phone, the company should focus their attention on creating more innovation in the current Surface line. If it keeps this up, it might take over a big chunk of its Cupertino-based rival's market share.
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Source: Windows Phone Failure A Blessing For Microsoft Corporation's (MSFT) Surface Line
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