Boston, MA 10/17/2013 (wallstreetpr) – Microsoft Corporation (NASDAQ:MSFT)’s biggest contributor of revenue is its Windows product. However, time and again concerns have been raised as to the continuity of the product to remain successful amid falling PC sales. Though Microsoft’s Windows 8 was perceived to be a strong measure to encounter falling PC sales but it too performed dull as the PC shipments dropped by 7.6% as per the released data by IDC.
Eventually, Microsoft has started to act in a direction to turn around events in its favor. The company’s recent deal with Nokia could be seen as an initial step to engage itself in products that have future amid declining PC sales. Microsoft has closed on a $7.2 billion deal with Nokia which will give it access to the Nokia’s devices and phone hardware.
By looking at the consumer preference, Microsoft sits in third place in the market, after Google and Apple respectively. The greatest challenge for Microsoft is that it does not enjoy a monopoly in Windows based Smartphones as it faces immense competition from other licensee companies, who have launched Smartphones with Windows OS along with Google and Apple. While Google’s Android phones have scooped out 79% of the market share, followed by 14.2% by iOS, Microsoft has just 3.3% market share with its 7.4million sales of the Windows phone. Microsoft’s deal with Nokia is convincing and encouraging but it’s crucial for Microsoft to surprise its consumers with more than what Google and Apple has so far offered.
Microsoft’s competition is headstrong with Google and Apple, but it still has the benefit over the rest of the licensee market players as they lack competitive edge and resources to stand up against Microsoft. For instance, Google’s acquisition of Motorola mobility and Samsung’s every day new product launch have created a lot of buzz for Android markets too which could give Microsoft a lot of insight on its strategies.
