If true, this signals a huge shift in WinPhone strategy. Up until Microsoft's (ostensible) goal has been to secure a place for a proprietary, commercial OS that runs on OEM hardware (pretty much the Windows model on mobile).
Microsoft jumping in with their own devices would probably signal the end of that, and the whole business will become much more Apple-like (vertically integrated, no OEMs). I can't imagine an OEM wanting to sleep in Microsoft's bed when they're going toe to toe with the people who build the OS themselves.
IMO, the right move, and was the right move from the get-go. When you put the software at arms-length from the hardware, the results speak for themselves, and branding suffers.
"If true, this signals a huge shift in WinPhone strategy."
This is a huge shift in their phone strategy, but I don't find it particularly surprising post-Surface-announce.
If you asked me a year ago if Microsoft were more likely to produce their own hybrid laptop/tablet or phone I'd have said phone in a heartbeat and I'd have thought you crazy for even suggesting Microsoft would build a laptop. There are far fewer serious OEMs for them to piss off in the Windows phone market than there are in the laptop space.
They have their 8X and 8S devices which was a partnership with HTC to make custom phones designed for Windows Phone 8.
Google tried to make their own phone with the S, etc but at this point the model that has worked for them in terms of bringing a phone to market and getting carriers even with the Nexus 7 on board has been working with a manufacturer to partner on building a phone rather than building it themselves. When Google built the Nexus One they only sold it online and unsubsidised and it flopped.
The question is, can Microsoft bring a smartphone to market with good margins, carrier deals, etc. When Windows Phone hasn't had much of a response from carriers thus far. It's a different game to a tablet and their relationships with Nokia and HTC don't seem to signal that they want to build a surface phone.
After Microsoft's announcement of the Surface Tablet... people had to see this coming. I'm not debating the merits of doing this or not doing this... but if MS was willing to make their own tablet, surely they were willing to make their own phone.
What's interesting is the difference between the mobile and PC market. With PCs - there is no other (realistic) OS for OEM makers to use. I mean, they just have to keep using Windows. For mobile handset makers... they can (and might) move over to Android. Interesting gamble on MS's part.
Personally, I'm excited. I think MS has received the wakeup call that they need.
The only OEM making Windows Phones that isn't already also making Android phones is Nokia. And given the resounding thud with which Nokia's Windows Phones have fallen (fairly or not), it seems unlikely that Nokia will exclusively pursue Windows Phone to its own demise, Elop or no.
So... there's really no risk to Microsoft here. It's just yet-another Hail Mary For Traction.
Microsoft is betting the farm on Windows 8 and it makes sense to me that they can leave nothing to chance. They have to have a plan B if hardware partners fail to come through. A company as big as Microsoft simply cannot pin their whole existence on a bunch of third party OEMs, especially when they are deeply in bed and arguably now far more invested with a bitter competitor. I would honestly expect there would be at least a skunk works project if nothing else. The news that the device is being tested, however, means it's come out of the skunk works - essentially, plan B has been "activated".
What I read from this, combined with the recent close partnering with HTC, is that MS is now heavily hedging their bets against Nokia failing, which can only mean they, with all their internal knowledge of their partnership with Nokia, now have strong doubts about whether Nokia itself is viable, or at least, viable enough to carry their flagship forward. So I wouldn't necessary read too much into this about the wider Windows8 strategy, but I'd read a lot of bad things for Nokia from it.
Because Microsoft wants to enter the hardware business, and every manufacturer who can't see that Microsoft wants to compete with them is simply naive.
I've stopped trying to figure out w.t.f. is going on at Microsoft with their phone these days. It's hard for me to imagine a more clownshoes couple of years.
If that's the case then MSFT will simply buy Nokia in year or two. Nokia are great at hardware. And they have already doubled down on windows phone OS. Not sure whether Nokia's all in strategy on windows phone OS worked or not. Looks like it is disaster in hindsight.
Don't get too excited just yet- they might just be making dev hardware for now. Nokia's "all in" on WP means that they have a great hardware partner for the time being, I'm not sure they'd want to jeopardise that just yet.
Seems like they already kicked Nokia in the face by giving HTC rights to call their 8X and 8S "Windows Phone" and basically saying it's their flagship at that event a few weeks ago. Wouldn't at all be surprised to see them make their own; they're already making their own tablet, so it's not like it's a big stretch.
Nokia's "all-in" strategy with WP, means it's "bye-bye Nokia" if Microsoft makes their own phone, though. The others can and will still rely on Android for the bulk of their sales anyway. What will Nokia rely on? Nothing.
The market problems faced by a phone and a tablet can be pretty distinct. If Microsoft is making a Windows Phone, I hope it serves to drive innovation and platform success, instead of just scaring away OEMs and cannibalizing what nascent platform there is.
If it's a foolhardy or hubristic attempt to grab imagined profits without consideration for carrier and other channel and customer obstacles, well... I'd regret the untimely / early demise of an innovative platform.
If Microsoft is not categorically denying this rumor by the end of the week, then it's true. It might still be true if they give some vague PR statement that sort of says they are not making a phone yet, but not really.
I wonder how this rumor will hit their partners, since even most of their PC partners didn't know about the Surface tablets before they announced it.
[+] [-] potatolicious|13 years ago|reply
Microsoft jumping in with their own devices would probably signal the end of that, and the whole business will become much more Apple-like (vertically integrated, no OEMs). I can't imagine an OEM wanting to sleep in Microsoft's bed when they're going toe to toe with the people who build the OS themselves.
IMO, the right move, and was the right move from the get-go. When you put the software at arms-length from the hardware, the results speak for themselves, and branding suffers.
[+] [-] IanDrake|13 years ago|reply
So, are you saying if Apple opened up and allowed OEMs to license iOS, no one would sign up?
I think every phone maker would jump on that.
[+] [-] rthomas6|13 years ago|reply
[+] [-] georgemcbay|13 years ago|reply
This is a huge shift in their phone strategy, but I don't find it particularly surprising post-Surface-announce.
If you asked me a year ago if Microsoft were more likely to produce their own hybrid laptop/tablet or phone I'd have said phone in a heartbeat and I'd have thought you crazy for even suggesting Microsoft would build a laptop. There are far fewer serious OEMs for them to piss off in the Windows phone market than there are in the laptop space.
[+] [-] brackin|13 years ago|reply
Google tried to make their own phone with the S, etc but at this point the model that has worked for them in terms of bringing a phone to market and getting carriers even with the Nexus 7 on board has been working with a manufacturer to partner on building a phone rather than building it themselves. When Google built the Nexus One they only sold it online and unsubsidised and it flopped.
The question is, can Microsoft bring a smartphone to market with good margins, carrier deals, etc. When Windows Phone hasn't had much of a response from carriers thus far. It's a different game to a tablet and their relationships with Nokia and HTC don't seem to signal that they want to build a surface phone.
[+] [-] hospadam|13 years ago|reply
What's interesting is the difference between the mobile and PC market. With PCs - there is no other (realistic) OS for OEM makers to use. I mean, they just have to keep using Windows. For mobile handset makers... they can (and might) move over to Android. Interesting gamble on MS's part.
Personally, I'm excited. I think MS has received the wakeup call that they need.
[+] [-] roc|13 years ago|reply
So... there's really no risk to Microsoft here. It's just yet-another Hail Mary For Traction.
[+] [-] zmmmmm|13 years ago|reply
What I read from this, combined with the recent close partnering with HTC, is that MS is now heavily hedging their bets against Nokia failing, which can only mean they, with all their internal knowledge of their partnership with Nokia, now have strong doubts about whether Nokia itself is viable, or at least, viable enough to carry their flagship forward. So I wouldn't necessary read too much into this about the wider Windows8 strategy, but I'd read a lot of bad things for Nokia from it.
[+] [-] moistgorilla|13 years ago|reply
[+] [-] eckyptang|13 years ago|reply
[+] [-] mtgx|13 years ago|reply
[+] [-] jfb|13 years ago|reply
[+] [-] dm8|13 years ago|reply
[+] [-] untog|13 years ago|reply
[+] [-] ericdykstra|13 years ago|reply
[+] [-] mtgx|13 years ago|reply
[+] [-] sabj|13 years ago|reply
If it's a foolhardy or hubristic attempt to grab imagined profits without consideration for carrier and other channel and customer obstacles, well... I'd regret the untimely / early demise of an innovative platform.
[+] [-] mtgx|13 years ago|reply
I wonder how this rumor will hit their partners, since even most of their PC partners didn't know about the Surface tablets before they announced it.