Last Week Microsoft Reported Windows Phone Job Cuts …
These were not unexpected but were sad to see nonetheless.
Many in the professional, tech blogosphere couldn’t help their baser instincts and chose the fact that the cuts were predominantly from the Windows Phone department (and many from the acquisition of Nokia) to spin this with no factual basis to their unknowing public as the end of Windows Phone.
No hard facts, just an opportunity to deride and ignore those who were losing their jobs in favor of a sexier linkbait.
With weeks until Windows 10 launches and down the line Windows 10 Mobile many of these “pro” bloggers indulged in a feeding frenzy worthy of Shark Week.
What Did Happen Then?
Microsoft reported from their News site on July 8th that CEO, Satya Nadella had approved another round of job cuts, totaling 7800.
The focus of these job cuts would be within Phone Hardware.
This was reported as allowing the company “…to record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.”
This was a quote from Nadella’s email:
According to Reuters and several other (actual) news sites, the market and analysts saw this as a positive move and as a result Microsoft stock rose 1.4% on the day.
Data courtesy of the Windows 8.1 Money App
Nutshell, nowhere in the Microsoft announcement did they mention anything more than a writeoff (albeit a big one) for the Nokia acquisition, job cuts or a streamlining inline with the strategic shift that CEO Satya Nadella has been pushing since day one from devices to ecosystem.
Sorry bloggers of doom but it seems your trollgasm was for naught.
The Warptest POV
Is Windows Phone dead? NO, it’s evolving and with it, its business model: –
Windows 10 Mobile has also been available as part of the Windows Insider Program. Many reports from Insiders show a much improved, robust OS; that once completed will continue to vie for attention. The latest insider version was mainly about polish for the UI, more bug fixes and a move to the new Store.
Only today, GSMArena (sporting a stylish new site design) reported that serial leakster @Evleaks (known for his reliable insights) confirmed at least 6 new Lumia phones in 2015. At least one of these can be considered a new, flagship phone. That doesn’t sound dead to me.
How many OEMs make Windows Phone now? More than ever, some are returning members of the Windows Phone family like LG, Samsung, HTC but there are others such as Blu, Yezz, Kazam and Japanese Mouse Computers MADOSMA phone. In addition Windows Phone and Xiaomi delivered Windows 10 Mobile as a ROM for the Xiaomi Mi4 thru the company’s MIUI Forum.
Phones are good but throw in connected devices and wearables (IOT) and you are building an ecosystem. It’s clear that Satya Nadella is a strong believer in the ecosystem philosophy, so it was no surprise to hear about several such devices from Microsoft going thru FCC approval that will support Windows 10 Mobile soon.
Bloomberg delivers the bottom line, at least two more years of Microsoft making Windows Phones. Time for markets to turn on their heads. Time for killer features like Continuum and Universal Apps to impact market share, and time to assess if Microsoft should stay in the phone business.
My tuppenies worth: –
- Yes, the trolls of the blogosphere have a huge impact on uninformed consumers. This needs a strong response from Microsoft.
- It’s time to dispense with the Lumia brand and rebrand as Surface Phone. The Surface is a solid, easily recognized brand with a stunning design. The flagship phone should emulate that with the same materials and style. If as some have suggested, the Nokia write off is more of the de-Ballmerization of Microsoft then this makes sense; putting Lumia in the past.
- Quality not quantity: there is a place for one or two low end phones but having a distinct line of phones where each answers a need is a better strategy than “flood the market with a variety of low end phones”.
- Consolidate and work with the OEMs so they are also offering striking, enticing phones to the public.
- Keep hammering the evangelism to the Developer Community to ensure that we maintain and improve on app parity in one stream but also ensure that the promise of Universal Apps delivers.
So to all those who indulged in their little trollgasms last week and were ready to nail the coffin shut on Windows Phone, sorry guys. Take your blankie back in the corner. It’s not happening any time soon.
To those whose jobs were cut last week, let me wish you the best of luck finding gainful employment rapidly.
To the consumers out there wondering if Windows 10 Mobile is for them? Don’t just rely on me and certainly don’t rely on the trolls. When the OS is launched get out there and go hands on.Try the phones out for yourself. I guarantee you will be pleasantly surprised.