Microsoft, BlackBerry and the battle for third place in Mobile

By: Gadjo Sevilla

December 11, 2013

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By Gadjo Cardenas Sevilla

Google’s Android and Apple’s iOS continue to dominate the mobile industry in terms of devices and mobile apps. The next few months are critical in the battle for third place.

The mobile landscape has been forever changed in 2o13 with Google acquiring Motorola Mobility and Microsoft swallowing Nokia’s phone business. BlackBerry launched BB10 early this year and proceeded the uphill battle to regain respectability in the smartphone industry it once defined.

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Microsoft has actually stolen the third place spot in mobile from BlackBerry by surpassing the company’s smartphone shipments back in May.   Windows Phone has 3.2 per cent of the market while BlackBerry had 2.9 per cent last May.  What’s surprising about Microsoft’s ascension over BlackBerry is that there were fewer  new Windows Phone models released this year while BlackBerry rolled out no less than four new smartphones for 2013.

Windows Phone launched back in 2010 with a long list of OEMs including Samsung, Dell, HTC, LG, Nokia and others. That list has been whittled down to just Nokia, who is the only OEM to have launched new hardware for Windows Phone this year. Microsoft also bought Nokia’s phone business and acquired all its assets and patent stockpile. Nokia, with its continuous evolution of compelling Windows Phone hardware is the big reason for Microsoft’s success. Nokia is responsible for over 80 per cent of Windows Phone sales right now.

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BlackBerry has had a tough year with internal conflicts, management changes and various layoffs, the company landed briefly on the auction block before deciding to soldier on and focus on Enterprise. 2014 will bring new challenges, and hopefully opportunities for BlackBerry to do battle with Microsoft. Aside from consistently improving its smartphones, it also needs to regain the confidence of users and also investors by innovating in the areas where it is most effective.

The deluge of Android devices in all shapes and sizes is expected to continue while pricing is expected to go down. Apple will maintain its place as the provider of premium devices and user experience, doing more of what it does best by refining its current product mix.

The opportunity for BlackBerry and Windows Phone resides in two camps. First time smartphone buyers who may want a third alternative to the populist Android OS and what some regard as the elitist iOS platform. This means  a third platform that is affordable, reliable and which can deliver at least more than basic smartphone functionality and which has a good enough ecosystem of apps and services.

The second camp is from previous Android or iOS users who are looking for something new. Perhaps features and experiences that can only be found in a third mobile platform. Nokia’s Lumia 1020, with its unique 41 megapixel camera, is a perfect example of a killer feature that some users can see themselves changing phones for. We should expect this strategy to continue.

 

 


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