Microsoft – Too brute a force

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Microsoft has loads of money but no clue how to use it. 

  • Paying developers to write applications is a well-known tactic for those trying to prop up an ecosystem that is not faring as well as it should.
  • Microsoft has backtracked on a long held policy and is now offering developers $100 per application for each Windows 8 or Windows Phone app up to a total of 10 apps per system.
  • This has been running since March 8 and will continue until June 30 but is only available within 50 US states.
  • This is a clear sign that Windows 8 and Windows Phone 8 is faring far worse than had been hoped and that one cannot blame it all on the economy or Apple.
  • Nokia has done this in the past for Symbian as well as many others who have tried to support ailing ecosystems.
  • It has never really worked and I suspect that it will not work again here.
  • This is mainly because, a lack of applications is not what I believe is hurting the take up of Windows 8.
  • Microsoft, in its typical bull-in-a-china-shop approach, is just throwing money at the problem and hoping that it will go away.
  • This is just the same as its marketing strategy around Windows 8.
  • It has made a few funky advertisements, bought lots of bill boards and tried to build awareness of Windows 8 but it will not work.
  • This is because everyone is already aware that Windows 8 exists, it is just that they have no clue why they should buy it.
  • With Windows 8, the Microsoft standard if-we-build-it-they-will-come marketing approach will not work.
  • This is because it is the way in which Windows 8 delivers digital life to the user that makes it great.
  • However, Microsoft doesn’t seem to think that this needs to be demonstrated to potential users.
  • Somehow, deep down, I am not convinced that it cares that much.
  • It will take off eventually and, while Mac OS does not seem to making much further impression on the PC market, those sales will come to Microsoft sooner or later.
  • It is the device makers that this will hurt more than any.
  • The likes of Nokia, HPQ, Dell and Acer don’t have forever for this to work as they are not sitting on a huge cash pile and 90% market share.
  • Hence, as Microsoft does not seem to care when Windows 8 takes off, it is they that must set the marketing agenda to accelerate user acceptance and delight. 

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.

Blog Comments

I wouldn’t say that they’re getting the ‘throw money at the problem’ angle wrong in general. How many years were they throwing money at Xbox before it took off? The trouble is that there’s a crowded market with well-rooted leaders, and making a dent will require patience. MS can afford to be patient, and I suspect they’ll brute force their way to a respectable slice of the pie.

Besides which – the phones are nice!

MSFT have been throwing money at mobile for 16 years and have yet to make a dent. I think a change in the way it thinks is required. I dont agree that the market is crowded as Android is not nearly as rooted as everyone thinks…there is plenty of scope for change.

[…] To be frank, the biggest problem that the PC market currently faces is the fact that everyone knows that Windows 8 exists but no one has the first clue why they should buy it. (see here) […]