On September 5th, Nokia (NOK) announced its two newest Lumia smartphone devices that will be running on Microsoft’s (MSFT) Windows Phone 8 operating system at Nokia World 2012. We were disappointed in how Nokia handled the Lumia WP8 launch because in its rush to upstage Apple’s new iPhone 5, Nokia was unable to announce when it would be released or who would be carrying it. We were impressed with how Apple handled the launch of the iPhone 5 and we believe that Nokia could take a few cues from Apple in how it handles a new product event. The one piece of information we received from Nokia World 2012 is that Microsoft is scheduled to officially launch the Windows Phone 8 software on October 29th. We believe that this is probably the reason why Nokia’s Lumia 920 and 820 won’t be available for sale until November. Because Apple executes better than Nokia and Microsoft, it completed the iOS 6 software for the iPhone 5 and will begin delivering the iPhone 5 on Friday September 21st. If Microsoft wants to take back mobile phone operating system market share, it better shape up and show us it can complete the Windows Phone 9 operating system in 2013 at the same time Apple completes its iOS 7 operating system.
As far back as 2007, Microsoft’s Windows Mobile operating system had 42% market share in the smartphone operating system market. We are still stunned as to how Microsoft’s market share in smartphone operating systems has crumbled from 42% to 4% in a span of 5 years. Part of the reason why its market share eroded was because it charged handset vendor up to $25 for each copy of Windows Mobile while Google (GOOG) gave away the Android operating system for free. Another reason was that Microsoft Windows Mobile primarily focused on the business enterprise market rather than the individual consumers. Apple’s iPhone ended up effectively creating the consumer market for smartphones and while Apple may be in second place behind Samsung in terms of worldwide smartphone unit sales volumes, it dominates the US smartphone market.
Apple introduced the iPhone in January 2007 and the iPhone served to permanently alter the mobile communications industry’s competitive landscape.
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