Steve Ballmer explains the reasons

Oct 1, 2008 09:58 GMT  ·  By

This year was full of surprises, as far as the mobile phones industry is concerned. Among others, there was – and still is – the problem of the operating systems that the handhelds use, as some of them are free, while others not. Google has already introduced its Android Platform on the mobile market, while Nokia will continue to buy licenses for Symbian OS as it plans to make its software royalty-free. Undoubtedly, this must be putting a lot of pressure on Microsoft.

Microsoft is currently charging 8 to 15 US dollars per phone, according the Strategy Analytics. This amount could really be considered too much, especially for a mobile OS that doesn't hold the supremacy on the market. Moreover, it is said that the fee Microsoft charges are decreasing its popularity with customers, especially since you can get the Android OS for free.

Reuters talked with Chief Executive Officer at Microsoft Steve Ballmer and queried him on the Windows Mobile and on how it was performing on the current mobile market. "We are doing well, we believe in the value of what we are doing," Ballmer said.

Speaking about Nokia and Google, Ballmer said that he saw no reason why they would go completely free. "It's interesting to ask why would Google or Nokia, Google in particular, why would they invest a lot of money and try to do a really good job if they make no money. I think most operators and telecom companies are skeptical about Google." the CEO said.

In the same interview, Ballmer also expressed skepticism regarding Nokia’s latest initiatives, by means of a rhetorical, yet straightforward question - "In the case of Nokia - are they really open sourcing, or are they really making Symbian their own operating system? We have to wait and see."

Telecom companies are still skeptical about the license-free operating systems, as per Ballmer’s statements. "Handset makers are skeptical of Nokia, operators are skeptical of Google, I think by actually charging money people know exactly what our motivations are."

Of course, Microsoft is trying to defend its Windows Mobile as best as it can but, considering the fact that it only holds about 10% of the mobile market, the question is for how long it will hang on to it with the prices it charges.