Palm overtakes Microsoft: Microsoft drops to number 3 in smartphone market: after Symbian AND after Palm
October 24, 2004 [General] | By Edward J. R.
By "smartphone" most analysts usually mean both smartphones (without touch screen but with keypad) and PDA phones (with touch screen or with full QWERTY keyboard).
While we, contrary to many other Windows Mobile websites, have been pointing out mitakes of Microsoft clearly - we always had Symbian (and the factor ruler of Symbian: Nokia) in mind as the main adversary of Microsoft powered cell phones. However now it appears that Microsoft's perfomance in the smartphone market is so lousy that even Palm OS powered smartphones are performing better! Maybe Microsoft should start listening to our critique...
Here are the current market share numbers in smartphone market:
Symbian: 87 percent. PalmSource (makers of Palm OS operating system): 7 percent. Microsoft: 4 percent. Please note also that RIM Blackberry devices are very strongly raising... and are considered by many also as "smartphones".
On picture below you can see Albert Chu - Vice President for Business Development of PalmSource [a software provider for palmOne] - who is presenting especially to msmobiles.com, during our visit on the PalmSource yacht in southern France, some smartphones powered by Palm OS:
By the way of various conferences (Switzerland, France, etc) we (i.e. msmobiles.ciom) have been meeting Albert Chu and Gabi Schindler (Senior Vice President, Worldwide Marketing) - both were (Gabi still is) members of PalmSource Executive Team. They were showing to us their smartphone plans and they also were pointing out that Microsoft's strategy to have 2 incompatible platforms (MS Smartphone and Pocket PC) is inferior to PalmSource's way - various platforms, yes, but application compatibility among platforms. Those PalmSource executives were nice to us (as a press members) but also humble and open to new solutions. Unfortunately we can't observe that in Microsoft, which seems to be complacent and self-indulgent, rather than listening to independent critique, like this one that we provide.
Never mind Symbian. At this moment in time Microsoft has no chances to catch up with Symbian at all. Microsoft has to catch up with PalmSource first! On Monday next week (1-2 days from now - depending on your time zone) the new Treo 650 smartphone, powered by Palm OS, is being commercially launched and again Microsoft camp doesn't have clear answer to this model: although HTC Blue Angel (aka MDA III, XDA III, i-mate PDA2k, ...) also has built-in full-QWERTY keyboard as Treo 650 has, the Treo 650 however is much smaller and it has non-movable keyboard, not a slide-out one...
Conclusions: although shipments of smartphones in coming years will be increasing a lot - it is a very big growth area in cell phone industry - Microsoft fails to convince end users and, as we were pointing it out many times in our stories, still keeps making unforgettable mistakes... to mention a few:
- cell phone platforms from Microsoft are fragmented - MS Smartphone and Pocket PC and programs from one are not running in antoher ; there should be only one platform for both types of smartphones: the classical smartphoens (without touch screen) and with PDA phone (with touch screen)
- MS Smartphone platform, despite running on equally powerful processors as many Pocket PC devices, is very crippled and does not have MS Reader (!!!), Pocket Excel, Pocket Word, Terminal Services Client, etc - porting would be very easy but Microsoft simply didn't do it
- there is still no AvantGo client for MS Smartphone and Microsoft did nothing to improve it
- both Windows Mobile platforms (MS Smartphone and Pocket PC) still doesn't have components for videotelephony so vendors can't bring 3G cell phones powered by Windows Mobile.
- Microsoft treats HTC specially - a Taiwanese hardware manufacturer, and Microsoft doesn't treat all other hardware manufacturers (producing Microsoft powered cell phones) with equal respect. We got feedback from them, that they get information and updates with delays, with regard to HTC.
- some feedback from our readers regarding advice to Microsoft - what is should do to succeed in cell phone industry:
- from Hawaii, USA: MS Smartphone should have a touch screen to compete with Palm OS.
- from Hong Kong, Asia: operators are selling cellphone plans mainly, but there is a need for someone to sell the concept of Windows Mobile rather! In other words: need of separate Windows Mobile marketing campaigns.
- from Hong Kong, Asia: wrong marketing! Not just to businessmen but also other marketing needed. For example marketing should show how a C500 smarpthone feels in someone's hand, how people can use it to cheer their girls, to listen to music, to watch movies when in traffic jam, and also for businessmen such things as how synchronize their calendar, contact list, Outlook. Microsoft fails to deliver the message. Windows Mobile itself should be a big brand!
- from Netherlands, EU: operating system in MS Smartphone should not be build only for businessmen but it should be nicer, handsomer and be easier to use. People want to see nice menus and easy to use ICONS - like it is in other cellphones. MS Office (for viewing/editing Word, Excel, etc) should be placed in MS Smartphone. Start menu should have nice animations. Shortly speaking: nice graphics to attract people on the street, not only businessmen.
- from Netherlands, EU: MS Smartphone should be very stable and be like PC. According to him MS Smartphone is to Sony Ericsson P910i as Zastava, Lada cars are to Rolls-Royce cars - due to instability of MS Smartphone.
- if you have more ideas about mistakes that Microsoft still makes in cell phone industry, please post them to us here (if you are reading this story through AvantGo channel, please use "Submit Feedback" link at the bottom of the page and at next synchronization the feedback will come to us)
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