And not the operating system?

Feb 11, 2008 12:07 GMT  ·  By

Looking at Apple's iPhone, Microsoft has got to understand that it's about the phone and not the operating system. The Apple brand in combination with Mac machines are giving the Cupertino-based hardware company the edge on the global computer market. The same recipe is valid for the smartphone market, where Windows Mobile powered devices are left in the dust by the iPhone. Still, Microsoft's hands are virtually tied behind its back. On both the smartphone and the PC markets, Microsoft depends directly on its original equipment manufacturing partners. And the OEMs have not really come through for the Redmond company, especially as far as the Windows Mobile business is concerned.

"Apple took 28% share of the fast growing US converged device market in Q4 2007, behind RIM's 41%, but a long way ahead of third placed Palm on 9%. This was also enough to put Apple ahead of all Windows Mobile device vendors combined, whose share was 21% in the quarter according to Canalys figures. In EMEA, where the iPhone officially launched part way through the quarter in only three countries, Apple took fifth spot behind Nokia, RIM, HTC and Motorola, but ahead of several established smart phone providers such as Sony Ericsson, Samsung and Palm," revealed Canalys, in the first week in February.

Microsoft's response comes under the form of intensified evangelism efforts, and the results are already beginning to emerge. The Mobile World Congress 2008 was the stage where the Redmond company unveiled the new XPERIA X1 Windows Mobile phone, from Sony Ericsson. XPERIA X1 is a complete package coming to the table with everything from mobile Web communication to multimedia entertainment.

"People should be able to have phones that deliver what they need throughout the day and stay connected with today's broad array of on-demand information and entertainment no matter where they are," said Pieter Knook, senior vice president, Mobile Communications Business, Microsoft. "Our shared vision with Sony Ericsson is to make the concept of 'One Phone for Your Life' a reality and finally give consumers the freedom of true mobility."

Obviously, XPERIA X1 is aimed at the iPhone. But this does not mean that XPERIA X1 will be able to dislodge the focus away from Apple's phone. However, it is a start. According to Microsoft, in the 2007 Fiscal Year, in excess of 11 million Windows Mobile licenses were sold worldwide. The company forecasts that the number will almost double, growing to 20 million by the end of FY 2008, which is the summer of this year.

"XPERIA is our promise to think foremost about user experience and to deliver on our goal of providing a true premium experience - anytime, anywhere, anything, with anyone," said Rikko Sakaguchi, head of Portfolio and Proposition at Sony Ericsson. "By working with Microsoft on the XPERIA X1, we have been able to couple our excellence in creating compelling consumer propositions with the productivity capabilities of Windows Mobile to deliver a seamless blend of mobile Web communication and multimedia entertainment within a distinctive design."