Microsoft aims to sell 100 million Windows Phones per year

Through the single deal and collaboration with Nokia, Microsoft is hoping to sell 100 million Windows Phone units per year as COO Kevin Turner announced during his keynote at WPC 2011: “We have dreams and aspirations that we can get to 100 million units per year with that single deal.” Of course Microsoft is still a long way out from that aspiration, but as Windows Phone 7 “Mango” is launching very soon and several new devices are on the way, Microsoft is heading down the right track.

As WPCentral notes, Microsoft is also plan on creating a unified ecosystem across all their hardware and software enhanced by Microsoft’s cloud services such as Windows Live, Bing, Zune, Xbox Live, Skype and more. At WPC 2011, Microsoft showed, through the slides below, how this is different from Apple’s platform that is divided between their Mac devices and the iOS devices. Through Microsoft’s unified ecosystem, they believe they can “win” in areas such as could services, search, advertising and phone – it will be interesting to see if this carries in practice as Google/Apple currently “win” in a lot of those areas.

Images courtesy of MobileTechWorld

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I think Microsoft is definitely heading in the right direction. I think this is definitely possible. And Microsoft isn't in the practice of making wild predictions, they tend to be very conservative with their predictions...

"Imagine if APple was the only phone maker. One new phone, once a year is that with an OS that never changes" - that would be very super-hi-end-fantastic thing. One Brand for all things, TV, Phone, Cars, Furniture, Fridges and so on...That's my wish for a christmas this year. Have a good day/evening/.

For all the idiots who thionk MS can't pull this off look at the numbers.
Nokia sells over 100M phones per year. Based on Elops own words and I paraphrase "Windows Phone OS will be on top tier phones, while Symbian/Meego will be on other device".

The vast majority of Nokia phone buyers will likely continue to buy the Symbian models bec they will be cheaper, especially in Asian countries. However, Microsoft could offer incentives to carriers in the UK and even here in the USA to subsidize more of the cost of a WP7 making them just as cheap as a lower costing less fancier device. Which would make Windows Phoen the BETTER choice.

Also once Nokia moves all its great services from OVI to WP7, the phones will also be the better buy.

For if only 75% of Nokia's present customers buy a WP7 device, that means nearly 8oM people will have the device. That means MS will move to 3rd place fairly quick. If Nokia desides to put Wp7 on cheaper device which eventually they will, that will consume whoever is left bec Symbian and Meego will be gone.

But then the issue is this. As Android phones get released in these places, they could easily choose Android over WP7, unless they are in love with Nokia only.

100M is not far fetch as some of you make it seem. The hate of Microsoft is just stupid. Competition drops proces and means we get better phones faster. Imagine if APple was the only phone maker. One new phone, once a year is that with an OS that never changes.

TechieXP said,
For all the idiots who thionk MS can't pull this off look at the numbers.
Nokia sells over 100M phones per year. Based on Elops own words and I paraphrase "Windows Phone OS will be on top tier phones, while Symbian/Meego will be on other device".

I highly doubt 75% of their market will buy Windows Phones. Nokia sells standard cell phones, and they sell a LOT of them. That's where their market goes to, not to smartphones.

Well there not going to aim for a 100 a year are they!, people need to stop talking crap about the OS unless you have used it.. Its a good platform and from what people I have spoke to have said from using it and my own view as I have a windows phone is that its a fab mobile OS only looking like to get better with future updates, ie Mango... Seen a lot of people on here bitch saying its not an Iphone so it will fail... Well done yes its not an Iphone lol, hence it being a different mobile but its new and looking to do very well given a chance.. Maybe this amount each year is to much, but they are a big company im sure they know what there doing...

and there is a maket willing to pay for that phone?. 100 millions? PER YEAR?? LMAO. Always a good laugh with microsoft. Thanks for the joke. Keeping comming!

ThePitt said,
and there is a maket willing to pay for that phone?. 100 millions? PER YEAR?? LMAO. Always a good laugh with microsoft. Thanks for the joke. Keeping comming!

+1
This and the IDC report make for a few good laughs. If their marketshare was actually increasing they might have an argument, but at the moment it's actually decreasing.

ThePitt said,
and there is a maket willing to pay for that phone?. 100 millions? PER YEAR?? LMAO. Always a good laugh with microsoft. Thanks for the joke. Keeping comming!

Yes there is. Becasue Windows Phone 7 is the most beautiful and innovative smartphone platform in the world.

By the way, is there a market for the pathetic Chromebook? Lol. Google is such a joke of a company.

sam17ub said,

Yes there is. Becasue Windows Phone 7 is the most beautiful and innovative smartphone platform in the world.

By the way, is there a market for the pathetic Chromebook? Lol. Google is such a joke of a company.

Lol sales certaintly don't agree with you. What Microsoft needs is better marketing for WP7, and for Mango to be released as soon as possible.

I think we need to clear up the misconceptions behind the 'infographic'

It's actually two powerpoint slides from yesterdays Day3 keynote at WPC2011.
This came at a time when the presenter was ripping through all of the competitors strategies.

When The apple comparison came up they used these two slides to show the difference between the two companies.

Without the audio that accompanied these slides, it can be taken out of context.

If you look at the Apple slide, they are trying to denote a separation of experience based on device type and OS.

All Microsoft powered devices will have access to the same cloud service platform, and all of their OSes will have integrated features, like TellMe voice, Touch, gesture (I imagine when Win8 retails, laptops will have integrated Kinect).

They are downplaying the significance of their own OS in favor of the software experiences and services enabled by them. I agree with the decision to make the consumer market about the experince rather than the OS, which is the core focus of the fruit company's strategy.

When this drops, cable set top boxes will be running Windows 7 Embedded, phones will be running Windows Phone 7.1 (Mango) and PCs will be running Windows 7 in all its variants, while servers are Windows Server 2008R2 to enable the Windows Azure services platform.

And for anyone who talks about how iCloud is going to add some sort of feature parity in the cloud services space, remember this: iCloud is enabled by Windows Azure (and Amazon S3).

dotf said,
And for anyone who talks about how iCloud is going to add some sort of feature parity in the cloud services space, remember this: iCloud is enabled by Windows Azure (and Amazon S3).

This is supposedly only for during the beta, while Apple get their shiny new datacentre up and running...

Unless they release a budget version of WP7, I don't see this coming. But you know, it was the same with the XBOX and look at it now

Will sell Microsoft more than Apple? Don't Think so. Next year Smartphone market will grow and reach more than 500M handsets, but a 20% for Microsoft OS is far from reality.

The only way to do this is keep pushing 2010 Mango-Powered handsets and sell them free with contract.

MS Lose32 said,
In their infographic they have a tablet AND a slate? What's the difference?

in MS's world a slate is without a keyboard, a tablet is with a rotating keyboard that can turn into a slate when folded back under the screen, MS has followed this model since 2001 when the first tablet OS was announced by them

ahhell said,
Well, if you actually looked at the pictures you should be able to figure that out for yourself.
Yeah and the rest of the world calls them a convertible laptop and a tablet. They are trying to make 3 categories out of what should be 2. I guess to make their infographic look better.

MS Lose32 said,
In their infographic they have a tablet AND a slate? What's the difference?

Tablets also have a stylus so you can do actual work with them, in addition to the keyboard. Slates typically don't nowadays thanks to Apple.

Entirely possible. The smartphone market in the US is argued near 50% of existing phone sales and I'm sure the story is similar worldwide. If the segment continues to grow (and it is far from saturated yet) then they can expect to see some amazing growth as long as they capture the minds of the new customers jumping into the market daily.

fsX said,

RTFA

LOL. Seriously, I don't see it happening. All these predictions assume those who bought Symbian phones are going to magically accept Windows Phone. Symbian right now is actually better in terms of features, apps etc. Why would the same users accept an inferior product? Not to mention the cost issue.

Microsoft_Bob said,

LOL. Seriously, I don't see it happening. All these predictions assume those who bought Symbian phones are going to magically accept Windows Phone. Symbian right now is actually better in terms of features, apps etc. Why would the same users accept an inferior product? Not to mention the cost issue.

I just spit out my tea, in what way is it a inferior product ? What does it miss ?

That means they will need to sell an average of 273,000 Windows Phone 7 devices per day. Android managed to do it. In-fact I believe Android is now at 400,000 activations each day. I don't know if Microsoft has the same popularity growing around their ecosystem as Android does but it's definitely possible.

Now about the 'Apple vs Microsoft' strategy. I don't really see the two so different. Microsoft is trying to say that the Mac, iOS and Apple TV are inherently seperate. But they all run OS X (although the iOS devices run a watered down version) and they all share similar services. If you push an update to iCal on your phone it goes to your Mac. If you buy a Book on your iPad it's available on your iPhone and if you rent a Movie on your phone you can watch it on your Apple TV or Macintosh.

What kind of 'integration' is lacking? If anything I'd say both Apple and Microsoft's cloud integration ideas are just as compelling as each other.

Vice said,
That means they will need to sell an average of 273,000 Windows Phone 7 devices per day. Android managed to do it. In-fact I believe Android is now at 400,000 activations each day. I don't know if Microsoft has the same popularity growing around their ecosystem as Android does but it's definitely possible.

Now about the 'Apple vs Microsoft' strategy. I don't really see the two so different. Microsoft is trying to say that the Mac, iOS and Apple TV are inherently seperate. But they all run OS X (although the iOS devices run a watered down version) and they all share similar services. If you push an update to iCal on your phone it goes to your Mac. If you buy a Book on your iPad it's available on your iPhone and if you rent a Movie on your phone you can watch it on your Apple TV or Macintosh.

What kind of 'integration' is lacking? If anything I'd say both Apple and Microsoft's cloud integration ideas are just as compelling as each other.

Microsoft's is free and is 5x the size. Just FYI.

Vice said,
Now about the 'Apple vs Microsoft' strategy. I don't really see the two so different. Microsoft is trying to say that the Mac, iOS and Apple TV are inherently seperate. But they all run OS X (although the iOS devices run a watered down version) and they all share similar services. If you push an update to iCal on your phone it goes to your Mac. If you buy a Book on your iPad it's available on your iPhone and if you rent a Movie on your phone you can watch it on your Apple TV or Macintosh.

What kind of 'integration' is lacking? If anything I'd say both Apple and Microsoft's cloud integration ideas are just as compelling as each other.

This.

I dont get the Apple vs Microsoft thing going on here... I dont see what difference microsoft is making? They look pretty similar to me... Theyre making a distinction between OSX and IOS, which is like making the distinction between Windows 7 and Windows Phone 7... They are both integrated and use similar services etc. Windows cloud services run accross all devices, but don't Itunes & Icloud do the same?

Theyre trying to make a distinction between the two when really there is none

Tk1917 said,

This.

I dont get the Apple vs Microsoft thing going on here... I dont see what difference microsoft is making? They look pretty similar to me... Theyre making a distinction between OSX and IOS, which is like making the distinction between Windows 7 and Windows Phone 7... They are both integrated and use similar services etc. Windows cloud services run accross all devices, but don't Itunes & Icloud do the same?

Theyre trying to make a distinction between the two when really there is none

Well, from what I understand, with Windows 8, they'll unify all their plataforms: pc, xbox, tablet, phone and etc.

I might have read it wrong, but it sounds like it will be one OS for all of their products/plataform, which is considerably different from Apple's (and Google's, if you factor in Android and ChromeOS), where iOS is different than OS X, eventough it is based on it. So, in MS environment, you'll be able to run the same application on any device (with possibly some performance restrictions on "weaker" devices), which I believe is not the case on Apple's ecosystem.

sviola said,

Well, from what I understand, with Windows 8, they'll unify all their plataforms: pc, xbox, tablet, phone and etc.

I might have read it wrong, but it sounds like it will be one OS for all of their products/plataform, which is considerably different from Apple's (and Google's, if you factor in Android and ChromeOS), where iOS is different than OS X, eventough it is based on it. So, in MS environment, you'll be able to run the same application on any device (with possibly some performance restrictions on "weaker" devices), which I believe is not the case on Apple's ecosystem.

It will never be 'One OS' what you will find is a similar graphical user interface on the top based on Tiles but below that they will be decidedly different operating systems.

norseman said,

Microsoft's is free and is 5x the size. Just FYI.

iCloud is free too. You only pay if you want your pirated music & music you ripped yourself held in the cloud and downloadable. And sure Microsoft offers more space for free but this is mainly due to Apples data centre not being finished yet. They also just started on a second data centre next to the one they just built. Giving users lots of storage takes time and according to rumors iCloud is still as of now running on Amazons S3 cloud which obviously costs Apple a lot of money vs using their own data centre.

What I'm basically trying to say is that Apples storage offering is subject to change, iCloud hasn't launched properly yet.

Vice said,
It will never be 'One OS' what you will find is a similar graphical user interface on the top based on Tiles but below that they will be decidedly different operating systems.

From tablets to PCs to media centers, it will be: Windows 8.

The only division is with phones. And I think Windows will eventually head in the direction of the Atrix, which would unify them completely.

MioTheGreat said,

From tablets to PCs to media centers, it will be: Windows 8.

The only division is with phones. And I think Windows will eventually head in the direction of the Atrix, which would unify them completely.

With Phones and the XBOX 360. And sure Windows 8 will run on Windows Desktops, Laptops and ARM powered computers but there will be a software divide. Software compiled for x86 needs to be recompiled for ARM and that will create fragmentation. It won't simply be 1 OS across all 3 of their platforms. Computers (Desktops, Laptops, Netbooks, Tablets) will be Windows 8. XBOX 360 will not run Windows 8 and neither will the Phones.

That is the divide I was referring to when I said it will not all run the same operating system.

Vice said,

It will never be 'One OS' what you will find is a similar graphical user interface on the top based on Tiles but below that they will be decidedly different operating systems.

Nope - one OS.

The point I think the slide is trying to make that with Apple's split OS model, you have to consume the content in different means - flash as but one example of this. This is the same for Windows 7 and Windows Phone 7 at the moment - but with Windows 8 you get a uniform platform.

Vice said,

iCloud is free too. You only pay if you want your pirated music & music you ripped yourself held in the cloud and downloadable. And sure Microsoft offers more space for free but this is mainly due to Apples data centre not being finished yet. They also just started on a second data centre next to the one they just built. Giving users lots of storage takes time and according to rumors iCloud is still as of now running on Amazons S3 cloud which obviously costs Apple a lot of money vs using their own data centre.

What I'm basically trying to say is that Apples storage offering is subject to change, iCloud hasn't launched properly yet.

but thats the point.. somethings not a free service if you need to pay the company one way or another.. Thats like saying a phone is free but then you need to pay to make calls, thats the entire point of the phone!
Also skydrive you can do so much more like Office docs.. its not a storage locker in the cloud but also a place I can do work and update files without having to pay for anything.. kinda like a watered down version of Office 365

Samsung777 said,
100 Million wp7 devices? yeah, good luck with that

It's good to have dreams and aspirations; otherwise you will become content cleaning peoples toilets with your own toothbrush.

Samsung777 said,
100 Million wp7 devices? yeah, good luck with that

Nokia sold 100 million phones last year, if they do that again this year with Windows Phone 7 as the OS then its entirely possible.

SoyoS said,

Nokia sold 100 million phones last year, if they do that again this year with Windows Phone 7 as the OS then its entirely possible.
+1

SoyoS said,

Nokia sold 100 million phones last year, if they do that again this year with Windows Phone 7 as the OS then its entirely possible.
100 million smartphones? Is MS going to lower WP7 prices to that of dumbphones?

Edited by thenotavenger, Jul 14 2011, 2:19pm :

MS Lose32 said,
100 million smartphones? Is MS going to lower WP7 prices to that of dumbphones?

It's nothing to do with the price of WP7, Nokia will be bringing WP7 to all their feature phones in 2012, the phones crappy phones they sell to "third world" countries will not be running WP7, all the other phones will be however.

MS Lose32 said,
100 million smartphones? Is MS going to lower WP7 prices to that of dumbphones?

Funny you should say that, here's an extract from a CNET article on Tuesday this week:


Microsoft sees smartphone prices cut in half by 2012

The head of Microsoft's Windows Phone division believes the company and its partners can cut the costs of smartphones running the company's mobile operating system by as much as half over the next year as a plethora of new devices hit the market.

Andy Lees, president of the Windows Phone division, told the 15,000 attendees at Microsoft's Worldwide Partner Conference in Los Angeles today that he expects the price of devices, before carrier discounts for long-term contracts, to hit $100 to $150 next year. Right now, they cost $200 or more, he said. And a year ago, those devices ran upwards of $400.

Read more: h**p://news.cnet.com/8301-10805_3-20078896-75/microsoft-sees-smartphone-prices-cut-in-half-by-2012/#ixzz1S5nfPhg4

20legend said,

Funny you should say that, here's an extract from a CNET article on Tuesday this week:


Microsoft sees smartphone prices cut in half by 2012
snip

its true.. smartphones are the new laptops.. microsoft and nokia will be able to flood the market with economies of scale that even google will have trouble combating against.. Android is doing sooo well because android is free and therefore they have released phones that are cheaper or with a bigger profit margin then before.. The ultimate at making inexpesive phones is nokia..

I would rather have a cheap phone with expensive software then a expensive phone with cheap software..

SoyoS said,

Nokia sold 100 million phones last year, if they do that again this year with Windows Phone 7 as the OS then its entirely possible.

They had symbian on them, not Windows CE. I have a hard time believing all those users will suddenly buy a Windows phone.

MS Lose32 said,
100 million smartphones? Is MS going to lower WP7 prices to that of dumbphones?

+1
That's a good point I forgot about that. Most of that 100 million are low end and would not be able to run WP7.

20legend said,

devices, before carrier discounts for long-term contracts, to hit $100 to $150 next year. Right now, they cost $200 or more, he said. And a year ago, those devices ran upwards of $400.

I seriously doubt that. Even if that is the case though, $150 is still not chump change.

Lachlan said,

microsoft and nokia will be able to flood the market with economies of scale

You mean channel stuffing? Because they'll end up with lots of old stock that way.
Lachlan said,

The ultimate at making inexpesive phones is nokia

I'll like to see Nokia try and make the same inexpensive phones it does today with the hardware requirements of WP7. That would be entertaining.
Lachlan said,

I would rather have a cheap phone with expensive software then a expensive phone with cheap software..

So you want to pay fees for inferior software and have it run like a dog on slow hardware? Wow! You must be a glutton for punishment

Microsoft_Bob said,

You mean channel stuffing? Because they'll end up with lots of old stock that way.

I'll like to see Nokia try and make the same inexpensive phones it does today with the hardware requirements of WP7. That would be entertaining.

So you want to pay fees for inferior software and have it run like a dog on slow hardware? Wow! You must be a glutton for punishment

First off, you are aware that larger phone seller can negotiate better pricing for components. Example, Since HP and Dell sell hardware at above 10M per quarter, they get a better deal on hardware vs Apple who only sells 1.5M computers per quarter. If MS can actually move 100M devices, they will likely get a very nice deal on hardware and thus past those savings onto us..

Just bec Apple sells iPhone for $750, doesn't mean its worth that much. Especially since they have no OS to license off. Android phones have several phones BETTER and they retail for $599 tops. In fact I havent seen one on retail for more than that and many have 4G NOW...

It cost Apple about $200 to make a device. So selling it for $750 to carriers mean, $200 covers the devices cost, $200 covers making the device again and $350 is all profit. This versus lets say HTC eho makes their own phone as well and sells one for $599. Assuming it also cost them $200 to make, $200 to replace..the profit margin is lower. But they sell far more devices. But it takes almost 3 phone sales to equal in profist what Apple gets. But again, since Microsoft makes more money off selling the license, they could easily drop costs by offer more services.

This of it this wa. With more WP purchases, that means more subscribers to Zune Pass or even Xbox Live. Then you have to consider more app purchases. Like console sellers, the object is to make the money off the software, not hardware. If Microsoft can sell 100M phones a year, they can eaily make up cost differences with their services and the stuff Nokia is also poring over to Windows Phone.

People never look at the whole picture. They just express hate for no reason. MS could easily sell 100M devices. In fact in oreder to gain second place, they will almost have too.

TechieXP said,

First off, you are aware that larger phone seller can negotiate better pricing for components. Example, Since HP and Dell sell hardware at above 10M per quarter, they get a better deal on hardware vs Apple who only sells 1.5M computers per quarter. If MS can actually move 100M devices, they will likely get a very nice deal on hardware and thus past those savings onto us..

Just bec Apple sells iPhone for $750, doesn't mean its worth that much. Especially since they have no OS to license off. Android phones have several phones BETTER and they retail for $599 tops. In fact I havent seen one on retail for more than that and many have 4G NOW...

It cost Apple about $200 to make a device. So selling it for $750 to carriers mean, $200 covers the devices cost, $200 covers making the device again and $350 is all profit. This versus lets say HTC eho makes their own phone as well and sells one for $599. Assuming it also cost them $200 to make, $200 to replace..the profit margin is lower. But they sell far more devices. But it takes almost 3 phone sales to equal in profist what Apple gets. But again, since Microsoft makes more money off selling the license, they could easily drop costs by offer more services.

This of it this wa. With more WP purchases, that means more subscribers to Zune Pass or even Xbox Live. Then you have to consider more app purchases. Like console sellers, the object is to make the money off the software, not hardware. If Microsoft can sell 100M phones a year, they can eaily make up cost differences with their services and the stuff Nokia is also poring over to Windows Phone.

People never look at the whole picture. They just express hate for no reason. MS could easily sell 100M devices. In fact in oreder to gain second place, they will almost have too.

Does it actually only cost $200 to make a smartphone? I'd like a source

SoyoS said,

Nokia sold 100 million phones last year, if they do that again this year with Windows Phone 7 as the OS then its entirely possible.

+1 and Microsoft may be a lot of things, but their predictions are usually conservative... They don't generally make wild announcements...

And honestly, it's a great OS and they're putting a LOT of work into it. Their commitment is quite clear.