Latest Mobile OS From Microsoft Cannot Turn the TideLatest Mobile OS From Microsoft Cannot Turn the Tide

Microsoft launched the Pocket PC in 2000 and really turned the tide in the mobile device market, long before there were smartphones. Palm was the leader, but due to advances by Microsoft and Palm resting on their laurels way too long, Microsoft became a dominate player in the PDA market. The PDA market though has all but vanished and smartphones have taken their place. Now Microsoft finds itself the underdog, and its latest release, Windows Mobile 6.5, won't be enough to turn the tide.The Wall Street Journal had an article yesterday called "Latest Upgrade For Windows Mobile Won't Cut It For Microsoft" and the title says it all. Microsoft has several hurdles to overcome, and no one to blame but themselves for getting in this position. I am sure I've said it before, but the last real update was in 2005 when Windows Mobile 5 shipped. They have made a number of behind the scenes upgrades, especially for corporate servers. However, the user interface of WinMo 5 and WinMo 6.1 is virtually identical except to the most discerning eye, and even in 2005, WinMo wasn't something new and revolutionary. In many ways, it was catching up to what other phones have had for several years.

One of the hurdles is the cost of the license. As the WSJ article notes, Google and Nokia offers free versions of their platforms to manufacturers. I don't know what MS charges for a WinMo license, but let's assume it is $5. If a manufacturer builds 250,000 phones of a particular model, it will have $1.25 million in lower profit than if it had built it using Android. You need to has something special in your OS to command that premium. Palm and Apple don't have to worry about licensing as they build their own OS, as does RIM. Microsoft is really alone among the major mobile platforms in charging a fee for each device sold. WinMo 6.5 isn't changing this.

Their market share has slid in recent years because of the stagnant user interface and new devices like the iPhone totally changing how people use their phone. WinMo 6.5 will make some inroads here as it is truly a touch device, though my understanding is it only understands one touch point at a time. That means that even if a WinMo phone had a capacitive screen, the OS wouldn't process multiple touches. That could change if someone like HTC developed their own drivers to handle it.

The worst thing though for the platform is its loss of mind share. I read a lot of blogs and articles on mobile devices and I have been amazed in the last six months or so how few articles even mention Windows Mobile. Three years ago, that wasn't the case. Now, you only hear about Android, the Palm Pre and the iPhone. The market share of the Pre and Android devices is laughable compared to the nearly 20 million devices Microsoft sold last year, but those platforms have all of the buzz, and that is important as it is the buzz that at least partially influences the buying decisions of consumers.

At least the launch of WinMo 6.5 is giving some mind share back to Microsoft, but I think we'll have to wait for Windows Mobile 7, due in 2010, before we see a meaningful reversal the mobile platform's fortunes.