Microsoft's mobile strategy is on the rocks, says
BusinessWeek's Olga Kharif. In the third quarter, rival Apple shipped more iPhones than the 56 smartphone makers that create Windows
Mobile-powered phones combined, according to research firm Canalys. In the past year, Windows Mobile has slid from being the world's second most popular mobile operating system to the No. 4 spot,
behind Nokia's Symbian, Apple's OS X and Research in Motion's BlackBerry. To make matters worse, Google's Android operating system has been met with popular demand, causing a host of new carriers and
handset makers to sign-up for making mobile devices that run on the Windows Mobile rival.
As Chris Ambrosio, executive director for wireless at Strategy Analytics, says, "On the important
issues, they are chasing the market...and they've got to chase much faster" to keep pace with carrier and handset maker demand for mobile software, he adds. Ambrosio expects Windows Mobile's market
share to drop to 11% this year from 12% in 2007.
Kharif points out that Microsoft's mobile partners are warming to rival software providers at a time when manufacturers and carriers want to
narrow the list of their suppliers to reduce costs. "But all is not lost for Microsoft," she says, adding that Microsoft can stay in the game if it innovates. For example, analysts say the software
giant should develop wireless cloud computing services for Windows Mobile and adapt the software for use with touchscreen technology.
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