Last week we heard that there was a new Sony Windows Phone in the works, although as yet we do not have any specific details on the handset.
Now according to Eldar Murtzain, Sony has received an investment from Microsoft in the range of $500 million for Sony Windows Phone smartphones.
Microsoft’s Strategic Investments
It is not just Sony that will receive financial support from Microsoft to produce Windows Phone devices. Microsoft is apparently paying Samsung $1.2 billion, Huawei $600 million, and other manufacturers $300 million to launch Windows Phone handsets. These substantial investments indicate Microsoft’s aggressive strategy to expand its Windows Phone ecosystem by partnering with major smartphone manufacturers.
The payments will apparently be made to the companies for making one Windows Phone 8 model. Microsoft is obviously looking to expand Windows Phone to other manufacturers, diversifying the range of devices available to consumers and potentially increasing market share. By incentivizing these companies, Microsoft aims to create a more competitive and varied Windows Phone market.
Impact on the Smartphone Market
Nokia has had around 90 percent of the Windows Phone Market with their Lumia Windows Phone devices. However, since the company is now owned by Microsoft, future devices will be released under the Lumia brand by Microsoft. This acquisition has allowed Microsoft to have more direct control over the hardware and software integration of its Windows Phone devices, potentially leading to more optimized and cohesive products.
It will be interesting to see if these investments from Microsoft will help boost Windows Phone adoption. By going after two of the largest Android makers, Samsung and Sony, Microsoft is looking to make Windows Phone devices more popular. Samsung, with its vast market reach and brand loyalty, and Sony, known for its high-quality hardware and design, could significantly influence consumer perception and adoption of Windows Phone devices.
Moreover, Huawei’s involvement is also noteworthy. As a rapidly growing player in the global smartphone market, Huawei’s participation could help Windows Phone gain traction in emerging markets where Huawei has a strong presence. The $600 million investment in Huawei underscores Microsoft’s recognition of the importance of these markets for the future growth of the Windows Phone platform.
These strategic investments could also lead to more innovation in the Windows Phone ecosystem. With financial backing from Microsoft, manufacturers might be more willing to experiment with new features and designs, potentially leading to more diverse and appealing products for consumers.
In conclusion, Microsoft’s substantial investments in Sony, Samsung, Huawei, and other manufacturers highlight its commitment to expanding the Windows Phone ecosystem. By partnering with these major players, Microsoft aims to increase the variety and appeal of Windows Phone devices, potentially boosting market share and consumer adoption. It remains to be seen how successful this strategy will be, but it certainly marks a significant effort by Microsoft to compete more effectively in the highly competitive smartphone market.
Source Eldar Murtzain, Xperia Blog
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
