Windows of opportunity

WHEN WINDOWS Phone 7 was unveiled in 2010, it seemed as if Microsoft was competing in a market where it could never hope to catch up. Its predecessor, Windows Mobile, had never really captured the attention of the average consumer – and now there was the twin threat of Google’s Android and Apple’s iPhone to deal with, essentially turning the smartphone market into a two-horse race.

It hasn’t been all bad for Microsoft; more than five million handsets running Windows Phone have been shipped. But its global market share in 2011 was just 1.9 per cent. That is a far cry from Android’s 47.4 per cent and Apple’s 18 per cent with iOS.

If the research firms are to be believed, however, things will change within a few years. While Windows Phone will still trail Android, iSuppli expects its market share to rise to 9 per cent globally this year, and to 15 per cent in 2013. By 2015, the firm says, Windows Phone will be marginally ahead of Apple, with 16.7 per cent of the smartphone shipments.

They’re not the only ones predicting a sharp rise in popularity for Microsoft’s operating system. Last April, Gartner predicted Android would surge ahead in the mobile market, to almost 50 per cent by 2015. Microsoft, it said, would have a 19.5 per cent share of the market, pushing Apple to third in the global rankings, with 17.2 per cent.

But there is still some ground to make up. Windows Phone 7 is languishing far behind its Apple and Google rivals, but an increasing number of manufacturers are adopting it for their mobile devices. This week’s launch of the Nokia Lumia 800 on the Irish market is the first time most Irish consumers will be exposed to Windows Phone.

With such a crowded marketplace, Microsoft has tried to do a few things differently to help it stand out, for example, the live tiles that update with text and images, and the fact that it has hubs instead of apps that stay completely separate from each other. This allows users to integrate social networks, such as Facebook and Twitter, with Windows Messenger and LinkedIn.

For newcomers to smartphones, Windows Phone has the added benefit of familiarity for many users; the operating system brings elements from the desktop version of Windows – a mobile version of Internet Explorer, Microsoft Office software – along with Xbox Live integration.

At the International Consumer Electronics Show (CES) in Las Vegas last month, Microsoft chief executive Steve Ballmer was keen to push the benefits of the operating system to attendees and point out Microsoft’s different approach to smartphones.

“I think with Windows Phone we’re clearly on the right track,” Ballmer said. “Windows Phone is the first phone that I think puts people first.”

The first major update for Windows Phone 7, Mango, addressed some of the software’s shortcomings and delivered many of the functions that might have been expected to be present in the OS from the beginning. Multitasking is a basic Windows function that was closed off to mobile users until the update was rolled out last year.

At CES this year, there were plenty of Windows Phone devices on display, with Nokia, and HTC showing off 4G phones and even a Fujitsu Toshiba Windows Phone to be seen.

Nokia is the first major manufacturer to commit itself in such a big way to Microsoft’s mobile operating system. While HTC, LG, Samsung and others have also opted to produce Android handsets, Nokia’s primary smartphone operating system will be Windows Phone, with Symbian taking a back seat.

For other manufacturers, there may be an element of hedging their bets. When Google bought Motorola Mobility last year, there was more than a little nervousness in the market. Gloomy predictions abounded that some manufacturers would pull back from Android for fear that Motorola would get preferential treatment from Google.

That was something the Android developer was quick to deny would happen, and so far it has been true to its word. Its new Ice Cream Sandwich operating system was first released on the Samsung Galaxy Nexus. But Nokia has decided to commit itself, setting up a partnership that may give both companies a significant boost in smartphone market share. Nokia has already shipped more than one million of the devices since the launch last November.

From the beginning, Nokia promised to bring its skills in hardware design to the platform. Microsoft has certain criteria handsets must meet to use its operating system. The processor has to be at least 1Ghz, with a minimum of 8GB of flash memory and a capacitive touch screen. In the early days, there was also a requirement for a camera and gyroscope, although these are now considered optional, paving the way for cheaper devices.

It helps Microsoft set a standard for its hardware, but it also resulted in an early crop of Windows Phone 7 handsets that all looked rather similar, regardless of manufacturer.

But now things have broadened slightly, something Microsoft was keen to demonstrate at CES. On stage at Ballmer’s keynote address, Windows Phone executive Derek Snyder said the “breadth of choice” was one of Windows Phone’s attractions, before going on to show off a range of phones from different manufacturers in different colours, with different screen technologies, but all running the same software.

Hardware will only get you so far, however. A large part of growing Microsoft’s market share will be convincing consumers that there are the applications on the platform which they need. In its second annual developer survey, technology analyst Ovum said there was growing interest in Windows Phone among developers.

“The growing momentum behind Windows Phone indicates that Microsoft has managed to convince developers that its platform is worthy of investment; its challenge now is to persuade consumers,” it said.

“A smartphone platform’s success is dictated not only by the pull of consumers and the push of handset vendors and mobile operators, but also by a healthy economy of applications delivered by third-party developers.”

One thing that could help is Windows 8, the new desktop operating system that is based on the same style interface as the mobile device software. The Metro interface is the future, according to Ballmer. Microsoft plans to use the graphical interface, based on tiles such as Windows Phone 7 across all its operating systems – tablet, mobile and desktop.

With Windows 8 set to become a feature of everyday life, it could be the weapon in Microsoft’s arsenal that boosts Windows Phone in the mobile market.