Microsoft CEO Satya Nadella officially announces the restructuring and serious downsizing of the mobile device production (which was taken over from Nokia in 2013). This was a hard decision, but finally the facts & figures are crystal clear.
The plan in 2013 was to reach 15% market share in 2018 and to reach a turn over of 45 billion US $. In the fourth quarter of 2014 Microsoft sold only 11 million devices, which is much lower than the competitors: e.g. Apple sold 75 million devices and Samsung 74. Also the market share is currently only 3% with a prognosis for 2019 to reach 5%.
This is a clear failure, and CEO Satya Nadella faced the truth and stopped it. However, Microsoft stays committed to smart phones and announced that the Windows Phone will be the flagship device for Windows 10, together with the surface tablets. It remains open how serious the competitors will take this announcement. So it remains a brave step of Microsoft and together with Windows 10 – an OS for the support of different devices – the Windows Phone will receive a new chance.