Windows Phone 7 off to a slow start in USA, being outsold by Windows Mobile

January 31, 2011 | By Surur

Microsoft still has a steep hill to climb to catch Android

In unwelcome news to Microsoft I am sure, the NPD has revealed that in Q4 2010 more Windows Mobile that Windows Phone 7 handsets have been purchased by customers.

According to the NPD, 4% of al smartphones sold ran Windows Mobile, down 3%, while Windows Phone 7 OS debuted at 2 percent.

Of course the numbers represent little more than half of a quarter’s sales, as Windows Phone 7 only debuted in USA on the 12th November, and only on two of the 4 major carriers.

“With its mid-quarter launch Windows Phone 7 entered the epicenter of competition between iOS and Android at AT&T. Both competitors offer mature feature sets and large app libraries,” said Ross Rubin, executive director of industry analysis for NPD. “Microsoft has made the case for Windows Phone 7′s differentiation and improved integration. Now, the company must close the feature gap, offer more exclusive capabilities, work with partners to deliver hardware with better differentiation, and leverage its extensive experience in driving developer communities to increase its app offerings.”

The NPD also warned that Microsoft’s opening quarter was slower than that of Android or WebOS when they debuted, but if it is any consolation to US Windows Phone 7 users, the platform is selling faster than WebOS, which only achieved 2% market share for the whole quarter also.

Android achieved 53% market share, up 9 points, while Apple was down 4% to 19%, tying RIM, who fell 2%, also to 19%.

The news comes as the Canalys revealed the results of their research, which shows around 3.1 million Windows Mobile and Windows Phone 7 handsets were shipped in Q4 2010. They did not reveal the split between the two OS’s however.

The numbers are an indication that Microsoft will need to spend a lot more money to win market share for their fledgling OS, including providing features Windows Mobile users have become accustomed to, such as desktop synchronization, WIFI tethering, and provide enterprise features which will allow businesses to adopt and manage the OS.

Read the full press release at PRWeb here.

About Surur

Site Admin and Windows Phone enthusiast, he has been using Windows Mobile devices since before they were called PocketPC’s. He is currently sporting a HTC 7 Trophy.

Tagged market share, sales, windows phone 7

jimski

"…providing features Windows Mobile users have become accustomed to…". Well no, not unless Microsoft was happy with their previous market share. They need to provide features that the masses will embrace and features that none of us have ever seen. Its a new day. Windows Mobile time has passed. Everything changes.

http://wmpoweruser.com wmpoweruser

In theory, but a) if Microsoft cant win over Windows Mobile users, who can they win over and b)Android is in the end just a slicker version of Windows Mobile, and does not have any features we have not seen on Windows Mobile already.

Bob

WP7 is winning over somebody. It's not like all 2 million units shipped are still sitting on shelves like the fanbois of other platforms are claiming.

You're selling the slickness of WP7's UI and its awesome responsive way too short. Apple has shown that a lot of people simply aren't impressed by pure specifications.

oijoij

pretty sure windows mobile had nothing close to zune, facebook integration, office integration (to this level), smoothness, speed, Web browsing capabilities…

the list goes on and on

WP7Fan

Still, you have to admit that Android is better executed than the old WinMo.

In my opinion it can't top WP7, but on the other hand that depends on your needs.
Altogether, Android is an excellent OS and there's no way of denying that. It just has a few flaws like the fragmentation – which is much less of a problem than on WinMo 6, plus the default market is much better than WinMo's one.

Speaking as a custom WM6.5.3 user (thanks XDA!), purchasing a WP7 in a month.
Just Visiting

Microsoft has 'won me over' and I'm not nor have I been a Windows Mobile user. Microsoft knows that the smartphone market is far less than the feature phone market and I'd wager to say that Microsoft is targeting the feature phone users primarily; and if they get some smartphone users from other platforms (which they are doing successfully, although not in droves) then even better! Simplicity and uniqueness are great talking points for WP7 and their market penetration will grow once the platform is on all carriers.

Steve

Sorry you're wrong.

We've been saying this for months, and now we've been proved right

Shackling their new platform was their biggest mistake, and the market is clearly reflecting this now. Androids popularity is down to the fact that it is both simple to use on the surface, but allows a lot of customization for those inclined to do so at the same time.

The only major problem with WM was the ridiculous user interface – an easy this to fix. Unfortunately Microsoft is falling into the same trap again with Balmer determined to run Win7 on tablets. Good luck with that my fat fingered friends

carlos

soñando.si follow FrAndroid shit sells, wp7 will do it better, scored more than 50 days when it came android
Bob

B*llshit. Android is doing well because it's a free OS that manufacturers can use to flood the market with anything from low-end POSes that anybody reading this site wouldn't look twice at to high-end phones with newest dual core processors.

People buy what's available, and Android is more available than all other OSes right now. WP7 get more traction when the device makers start producing more devices. Samsung has already claimed that they will release more WP7 devices in 2011 than Android devices.

Brian

Samsung said that some time back though, I would be willing to bet that no longer reflects current thinking from them. With only about 1.5 million phones in customers hands right now (best case), I doubt the market can even support the 10 or so models that are shipping now.

chinch

pretty lame article & headline. You have stats of US sales from 11/8/2010 to date of WP7 vs WM6 phones?

No you do not. So saying it's "being outsold by Windows Mobile" is plain ignorant and ad-grabbing sensationalism.

Secondly until CDMA ships you can factor the USA release as a "soft launch". Clearly GSM = everywhere else and less than half of America.

yawn

ps – your quote and "author" has the Nov 12 launch wrong too

Brian

Actually it was NPD who said that WM6 outsold WP7 and, yes, NPD do have the "stats" to back that up.

carlos

"Windows Phone 7 devices appeared too late in the quarter to take full advantage of holiday season purchasing. As a result, Microsoft lost share in the United States, from 8% in Q4 2009 to 5% in Q4 2010"
.This report
carlos

windows phone 7 launched in Nov so these numbers are for 50 days and not 90 days like others… so i think Microsoft did a bit well too.
http://www.facebook.com/profile.php?id=100000096491109 Mj Williams

This cannot be surprising…well because its undermarketed to a specific demographic and turns off the hacking community that is resistant to change.

In my eyes no surprise, although its only one quarter and let's not forget no CDMA carriers which still has a lot of US subscribers. Only having GSM providers shot US WP7 sales in the proverbial foot…so this shouldn't come as a surprise, you sell it to TMOBILE (which is the fourth selling mobile carrier after sprint, verizon and att) and then ATT which is iphone envy. Top that with customer service representatives forcing android down users throats, anyone with an interest with windows anything is insulted from the customer service representative or leaves purchasing an android device.

This comes as no surprise, but we have to consider all the reasons why this is happening. Only so much can be attributed to the phone and not the mobile trends. While microsoft has created a hardware and software standard, there isn't a uniform standard to mobile carriers. This needs to be addressed and fast. Microsoft needs to do this

Brian

If it's true that not having a CDMA phone is so bad how do you explain Apple's success in the US?

carlos

EY if in 50 days received 2% in the 90 days that it is measured as the other s.o would be 4% easily, bad
carlos

EY if in 50 days received 2% in the 90 days that it is measured as the other s.o would be 4% easily,not bad
http://twitter.com/zunekade @zunekade

After reading the title, I thought this was going to be an Onion article.
joex

Sad to see the shit Android outsell the WP7.

http://twitter.com/ShinyProton @ShinyProton

How could it be different? Have you seen the amount of phone running on Android?__With companies trying to shave anything possible to maximize the profits on phone sales, why wouldn't they choose an OS that is license free for them?____From an objective standpoint, WP7 is a much more "designed" phone experience. Meanwhile without a much stronger offering to differenciate itself, it will have a hard time competing the Android push. Where is the "distinctive" web back-end to support WP7. The only thing offered today is this "obsolete" looking windowsphone.com that is a rushed mashup of existing services? Following the $300M catastrophy that was the Kin, why didn't Microsoft used the incredible Kin Studio and rebranded it for WP7? They would have a real distinctive platform that, with the adequate marketing push could continue it growth.____Anyhow, this is not unique to WP7. Even Apple starts feeling the presure from the army of hardware manufacturers choosing Android. Will we see licensed Apple hardware anytime soon? They may eventually not have the choice.

jabtano

Really there is no way that winmo6+ is better than WP7. Granted out of the gate WP7 was missing features that will becoming down the pipe. Out of the gate WP7 was missing some things that every single mobile device has such as custom ringtones. they missed it there. but when you look at WP7 one can not judge the OS because it doesn't have a custom ring. for this OS to win MS really needs to market it. and educate the masses. when they market it show the OS and what it does. they haven't done that very well. but it's still a virgin OS let's see what the update brings to the table.
PaddyParker

I really like my WP7 phone but there is definitely room for improvement. It’s only been on the market 3 months and regardless of its sales number, there is no way Microsoft is leaving this market even if it takes another 2 years to get it right. Anyhow, I think there are a number of reasons for Microsoft’s poor sales:

1) Hardware Manufacturers really let Microsoft down. There isn’t one cutting edge phone out there.
2) Microsoft’s image. If people can’t distinguish between Windows Mobile and Windows Phone, Microsoft is in trouble. A new name may help.
3) Poor marketing. Think of the droid commercials for Verizon and what a success those were.
4) Kin. Besides the PR disaster for Microsoft, It also sucked up valuable engineer resources from WP7 that would have allowed WP7 to more complete on release day.
5) Lack of updates. There should be an update every single month in my opinion.
6) How about some exclusive xbox franchise game tie-ins for WP7?

Keith

I don't consider the sales that poor myself. But there are a few important items not on your list as to why it hasn't sold better.

No CDMA phones.
Very poor Zune and Bing services outside the US.

PaddyParker

I own a WP7 phone but the sales are relatively disappointing so far. I can't imagine its inline with Microsoft's expectations. Good point on no CDMA. In the US we have the full zune and bing experience so sales don’t seem to be affected either way by it but I can imagine it being a deterrent in other countries.

Keith

Microsoft has targeted 30 million by the end of 2011 so the lion’s share of that would be in the latter 2 quarters, at least 20 million I would think, leaving the other 10 million to come from the first 8 months. I would guess their expectations for the first 2 months would have been 1.5 – 2 million sold to customers. So if the sell-through number is close to 1.5 million then the sales are inline so far I would say.

Brian

Given that you need about a month's inventory to fill the sales channel (and that's if you're running a well oiled lean company), it's likely they're actually selling no more than 500,000 per month. 3 months of 500,000 in sales (including January) plus 500,000 in the channel equals 2 million total (and that matches the licenses sold number Microsoft has just given us). They'll be lucky to sell 6 million phones in 2011 at this rate.

Just Visiting

@PaddyParker:Agree with most of your points, with the exception of points 2 and 4. Microsoft’s image, in general, is OK with regards to Office, Windows 7, etc. so that will help them. I think, points 2 and 4 may be more applicable to those who were already using or had used a Windows Mobile/Kin device. The Kin was limited to Verizon and was only on the market for a short period of time; so the pay as you go/feature phone user would not necessarily have an adverse disposition towards WM/Kin due to unfamiliarity (as least I don’t). And given that the smartphone arena is a small portion of the cell phone pie, I think Microsoft has a good chance of capturing the current non-smartphone market. When I see statistics such as these, I don’t view the low percentages that Microsoft has in the mobile arena as a fail simply because there are so many cell phone users who have never had a smartphone, but are ready or on the fence about getting one – it is THIS demographic that is going to give Microsoft surge that it needs.
syrinx

Regarding your first item, please define "cutting edge." Is the Samsung Focus chopped liver?

PaddyParker

My WP7 phone is a Samsung Focus and I really like it but that phone is just an extension of Samsung Galaxy line which was lanuched in June 2010. Even at that the Samsung Focus had the weaker snapdragon processor and not hummingbird that the other Galaxy phones have.The Dell Venue Pro was unique but Dell hasn't delivered on it yet. A phone with a slide-out speaker…say no more. HD7 is basically the HD2 a year later with a different label on it.

Which WP7 phone made you go wow? and why?

roach_779

I was actually going to buy Winmo from a new carrier that offered a better package because they did not have Window 7. My intension was to eventually buy an unlock WP7 from another carrier. There was a couple factor, I couldn't go forward and buy WP7. I needed tethering, audible and offline map which WP7 didn't have. My current provider did match the new carrier's package, so I got Optimus 7 and bought a second hand Winmo to fill lacking features. I did got tethering going on my Optimus 7, I'm thinking of dropping Audible and I haven't gone on a vacation to even need a an offline map, so I'm using WP7 fulltime…and loving it.
jimmyfal

I am traveling with my new windows phone for the next few months. DON"T CHANGE the interface, it is FAR superior than ANYTHING out there. HOWEVER. I have to:
1. plug the sim card back into my HD2 so that I can see ALL of my contacts, NOT just the 1,000 limit of hotmail.
2. plug the sim card back into my HD2 periodically so that I can tether.
3. marvel at the fact that I cannot speak the ability to simply SHOW a contact. IT ONLY DIALS. Are you kidding me?
I had to purchase additional batteries because of how often I use this phone ($5 a piece for batteries!!! YES), it is a dream to get around with Bing search and maps, a DREAM. But I can't create push points on Bing Maps, UNLESS I pin them to my start screen, and then i can't label them.

I think they should do commercials that focus on the Bing search PERIOD. When they decided to chuck the loyal WinMobile userbase out the window, they messed up BIG TIME. I can only hope that they "have plans for us" soon.

I could give a CRAP about copy and paste guys. Show me something, ANYTHING that the other phones aren't already doing.

JF

http://www.facebook.com/profile.php?id=38405739 Alec Lunsford

Hold down in Bing maps to drop push pin.

zzz

Let's put things in perspective here. 2% of WP7 becomes 3-4% when you factor in the mid quarter launch. 3-4% can become 8-12% when you start selling to CDMA carriers also. Tmobile is pretty small and so is AT&T's non-iphone base. Verizon and Sprint are much bigger for WP7. Don't read too much into the low 2% number and the comparison against WM.

applejack

Are you sure you aren't a webOS supporter from 2009? I think I've heard this song before.

WP7 had 2/3 of a quarter and the pent up launch demand. That 2% goes to 2% if you're lucky – you get 3 full months this quarter but no launch related demand.

CDMA may get you another 2% if WP7 isn't dead by then. I'll be suprised if WP7 ever gets above 5% market share (unless MSFT buys/pays off Nokia which will be a huge admission that it was never going to get above 5% market share.)

Asdf

So when is this site changing it's url to wphaters.com?
Hatorade

Monday morning sensational Post?

1.) WP7 just launched in Novemeber on only 2 carriers with only one carrier being more visible than the other (yes TMO and their Droid sales rep, I have not seen a windows posters inside 4 of the TMO stores I have been to, extrememly sad)

2.) CDMA version not out, Verizon and Sprint have large customer bases in the US and most people wont just switch carriers overnight

3.) Contracts! Contracts! Contracts!!! People here are tied down with the contract BS and have to wait for their end date before they can switch, most future smartphone users on a contract will wait till their contract is over so I dont see a mass number of consumers making the switch over night.

4.) Android came out first on a crappy h/w the G1 which was butt fugly and it took 2 years and numerous updates before it started creating waves.
PaddyParker

I agree there is a little bit of sensationalism in the title there. I think the blog is suffering from a side-effect of buying the msmobiles.com domain.
carlos

It's funny but to find bad press for wp7 never thought that somewhere windows, breakthrough with these numbers is demonstrated that when microsoft said that sold 2 million cell phones was true and not on the shelves as some sugerian now those no longer speak and find a new debate
zzz

I will tell you other blogs are picking up this headline. *sigh* It's pretty amazing sites like this and Paul Thurrott's would want to create bad and misleading press for WP7 just to get a few hits. I can understand Android or Apple blogs doing it but wmpoweruser.com? C'mon.
ejlee2006

Blah blah.
jabtano

Just a question do you think MS should have used another name instead on WindowsPhone7? would that have helped in the big push coming out of the gate?

syrinx

I've actually been thinking about that a lot, especially if they put the OS on a tablet. Can you imagine them announcing a tablet and saying it uses the Windows Phone OS?

They should have called it Windows Metro or something like that. Just sayin'.

jabtano

Yea even if they had use the name the ZunePhone I think people would have looked at it differently.I could be wrong I'm no marketing expert by no means. Rather it's just more of a thought that I've been thinking about when looking at my device.

chmun77

WP7 is still being Android because it is really still a crippled OS as compared to Android / iOS.

1. Copy & Paste (still no official news yet as of now)
2. Missing USB Tethering.
3. BING search and maps is not worldwide ready.
4. iOS having a better BING search and One Note is already available on it too.
5. Still very limited app supports. Cannot even find a working Compass app on the Market place for WP7.

Consumers do not bother if WP7 is a new OS or not. As long as they find that WP7 cannot satisfy with their needs, they are going to choose iPhone / Android over WP7. So, being a new kid on the block is not an excuse. MS will need to speed up with their patches and push WP7 to a better platform standard.

Steve

Agreed… the phone is fine if all you want to do is make phone calls and send the odd email, but people don't buy expensive smart phones if that's all they want to use them for.

A major reason why there are still so few apps for WP7 is because the API is severely limited.