Microsoft has stong quarter but not crowing about Windows Phone 7

Microsoft strong quarter doesn\'t highlight Windows Phone 7
Microsoft strong quarter doesn't highlight Windows Phone 7

Microsoft had a great second quarter with $19.95 billion in revenue and $6.63 billion in profit but the company hasn’t exactly been crowing about the success of Windows Phone 7 and that may not be a great sign for the just-launched smartphone platform.

The company has already said that it has sold 2 million Windows Phone 7 licenses to manufacturers and these have already been sold to carriers. Whether those devices are in the hands of users isn’t that big of an issue but the fact that the Apple iPhone generally outsells that in an opening weekend is.

The division which Windows Phone 7 is under in Microsoft saw 55% growth in revenues for the quarter but that is mainly due to the massive success of the Kinect, which sold 8 million units in 60 days. So, is Microsoft doomed in the mobile game?

I’d say no. The company does have a good foundation with Windows Phone 7, as we were very enthusiastic about it in our review. It’s a smart take on modern mobile computing and most of the hardware it runs on is good enough for the majority of users.

Additionally, Microsoft knows that this isn’t a sprint, so it has laid a solid foundation which it can build upon. The revenues in the other departments also mean it can eat some costs with Windows Phone 7 until it can reach critical mass.

The problem with that approach is that competitors aren’t going to stand still. Yes, Windows Phone 7 is a good 1.0 smartphone platform but the iPhone is on version 4.0, BlackBerry is on 6.0, Android is on 3.0 and all of these platform continue to evolve at a rapid pace. It’s not impossible for Microsoft to catch up but it’s going to be very difficult.

What do you think of Microsoft’s chances in the smartphone game? Will it be a major player or just an also ran?

[Via Microsoft, photo]

  • SUPERFLOP

    • Anonymous

      I think that’s too harsh. The Kin were superflops.

  • Anonymous

    Can someone ban this guy or something, his lack of maturity and always spamming the same thing in every post is freakingly getting annoying.

  • When are you idiots going to realize that Windows Phone 7, two years late to the market, is not going to explode and outsell everything. This is going to be a slow burn for Microsoft. They are going to have to fight and claw their way back to respectability. Seems some people were stupid for having such idiotic expectations. Microsoft just has to keep at it.

    Sooner or later, people will be looking for an alternative when they get sick of that giant piece of sh*t known as Android.

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