Microsoft Gets Off to a Good Start with Windows Phone 7 Launch

Event Summary

October 11, 2010 – Microsoft provided details on Windows Phone 7, which will make its debut in some European markets on October 21 and in the U.S. November 8 at AT&T and T-Mobile. The phone’s interface features Hubs for categories such as People, Music and video, Photos, an XBOX hub for Games and Office. Hardware vendors include HTC, Samsung, Dell and LG.

Quick Take

Analytical Summary

• Current Perspective: Positive on Microsoft’s Windows Phone 7 launch, because by starting fresh with a new OS, new UI and extensive integration with other Microsoft assets, the company is giving itself a chance to be a part of the mobile industry in the future.

• Vendor Importance: Very high to Microsoft, because it is a computing software company, and while it dominates the PC OS and office software market, the future of computing is mobile. Microsoft cannot afford to cede the mobile market to Apple and Google, because if it does so it will find its core PC market shrinking down the road.

• Market Impact: Very high to smartphones, because after being an early entrant in the space, Microsoft saw its influence and sales erode dramatically with the rise of iOS and Android. It is still too early to tell whether consumers will embrace a reborn Microsoft – the company has clear brand, app and distribution challenges – but Windows Phone 7 is good enough to give it a shot.

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Competitive Strengths and Weaknesses

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Analytical Perspective

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