4 ms·

I honestly don't think Microsoft can compete in this market, which is a shame. First, what would MS do? Follow the Google approach and make a platform or follo

by rsj_hn 5y ago

I honestly don't think Microsoft can compete in this market, which is a shame. First, what would MS do? Follow the Google approach and make a platform or follow the Apple approach and make a full phone? Google makes a platform, leaving the major handset makers to provide the hardware, UI, and support. Google is not really making a lot of money on that platform, it only makes money from the playstore - say $10 Billion/year. That's nothing to MS. One can argue that the Google apps installed in android phones make some more money (e.g. maps, search), but those apps are also installed on iPhones. The amount of money involved in the platform game is not really worth it to Microsoft given the engineering required, and android is a market leader -- MS would make a small fraction of that. Of course MS could try to charge a lot for its platform, but with android being (effectively) free, it's not clear how this would work. So then MS could get into the phone business and be a real hardware company. Here, I just don't see them beating Apple. They don't design their own chips. They don't innovate as quickly. Job's famous quip that MS "has no taste" is still true, IMO. There was a reason they exited this market, and it was that they couldn't compete in it. Not sure which of their most recent moves into cloud would suggest that this has changed.

noir_lord 5y ago
I agree. Google makes android so they can stay the default search engine on the device in your hand and sell advertising so it can be revenue neutral or slightly net-negative and they don't care. Microsoft would have to make actual money to make it worth it re-entering and it's not a high margin market (well not true, it has a high margin market but that's Apples side and good luck competing with them).
lenkite 5y ago
MS has crossed 2 billion in a quarter in Surface book sales. So they have proved they can deliver a full platform by themselves in the laptop market - which is even more saturated and competitive than the mobile market. What is lacking is vision and will here.
- rsj_hn 5y ago
  > which is even more saturated and competitive than the mobile market. I disagree. It was the decline of PC laptop build quality that prompted MS to get into this game, after years spent vainly begging OEM partners to sell at least something whose build quality, finish, and overall appearance could compete with Apple's wares. And this strategy worked, as PC laptop build quality has improved a bit. That market was huge and wide open for MS. But still Apple outsells them more than 4 to 1.

by rsj_hn 5y ago

noir_lord 5y ago

I agree. Google makes android so they can stay the default search engine on the device in your hand and sell advertising so it can be revenue neutral or slightly net-negative and they don't care. Microsoft would have to make actual money to make it worth it re-entering and it's not a high margin market (well not true, it has a high margin market but that's Apples side and good luck competing with them).

lenkite 5y ago

MS has crossed 2 billion in a quarter in Surface book sales. So they have proved they can deliver a full platform by themselves in the laptop market - which is even more saturated and competitive than the mobile market. What is lacking is vision and will here.

rsj_hn 5y ago
> which is even more saturated and competitive than the mobile market. I disagree. It was the decline of PC laptop build quality that prompted MS to get into this game, after years spent vainly begging OEM partners to sell at least something whose build quality, finish, and overall appearance could compete with Apple's wares. And this strategy worked, as PC laptop build quality has improved a bit. That market was huge and wide open for MS. But still Apple outsells them more than 4 to 1.