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Ballmer Admits Windows Phone 7 Sales Are Disappointing

- By - Source : All Things D

It's been almost a year since Microsoft announced Windows Phone 7. While things have been going okay for the brand new mobile OS, adoption hasn't been stellar, which Microsoft's Steve Ballmer readily admitted this week in front of analysts.

"We haven’t sold quite as many as I would have liked in the first year. … I'm not saying I love where we are, but I am very optimistic on where we can be," the ever-enthusiastic CEO said at a financial analyst meeting.

Microsoft has had the backing of major hardware partners since Windows Phone 7 launched. HTC, Dell, Samsung and LG all have phones that run the operating system, and HTC has already announced hardware for Windows Phone 7.5, aka Mango. However, it seems Ballmer is banking on Microsoft's newest partner to really give the OS a boost. 

"With Nokia we have a dedicated hardware partner that is all-in on Windows Phones," All Things D quotes Ballmer as saying. "They are not doing something on Android or [any other operating system]."

Nokia announced earlier this year that it was adopting Windows Phone 7 as it's primary smartphone OS. With the first of its handsets set to debut in the fall, the partnership is a chance for both Microsoft and Nokia to boost their respective profiles in the smartphone market.

"Today in London, our two companies announced plans for a broad strategic partnership that combines the respective strengths of our companies and builds a new global mobile ecosystem," the two CEOs said in an open letter published in February. "The partnership increases our scale, which will result in significant benefits for consumers, developers, mobile operators and businesses around the world. We both are incredibly excited about the journey we are on together."

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ikyung 09/16/2011 4:18 AM
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Wasn't Nokia bought out by someone? Hmm.. I must have dreamed it.

zybch 09/16/2011 4:19 AM
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WP7 really is a great mobile OS, and unlike android it actually brings something new and interesting to the mobile platform rather than just copy the stayed and boring apple 4x4 grid of icons of apps that don't seem to be integrated in any meaningful way.
It will be interesting to see what Nokia's re-entry into the smartphone market will bring. Their maps service is amazing.

arson94 09/16/2011 4:33 AM
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I love my HTC Trophy. I can't wait for the Mango update, but I still like the current version. I'm also interested in seeing what Nokia can bring to WP7.

aftcomet 09/16/2011 4:35 AM
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Give it time. He's right about being optimistic. With RIM in the toilet, WebOS out of the picture, there is room to grow. iOS and Android are titans right now but WP7/WP8 coupled with Nokia's brilliant hardware could end up being a huge threat, ESPECIALLY if Microsoft could find way to bridge the enterprise gap RIM left open.

topcms 09/16/2011 4:37 AM
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," All Things D quotes Ballmer as saying. "They are not doing something on Android or [any other operating system]." I disagree with what was told, I think that what he really means is now windows have someone making a windows hardware specifically. Now there is a chance for windows to show it's power on a Hardware to Software perfectly integrated system. I can't figure how haven't they done this before. And i think if it weren't for apples hardware to software perfection they would have got nowhere.!!! You don't need to be a genius to figure that out. I really hope for microsoft to become one of our choices.

captaincharisma 09/16/2011 4:37 AM
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wiyosaya 09/16/2011 5:45 AM
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I looked at Windows Phone 7 a while back. I have a Windows Mobil 6 pocket PC, and there were a few things that I consider unacceptable for me to switch to a WP7 device. 1. It formats your SD card making it useless outside of the device - I have a mapping app for WM6, OnCourse Navigator 8, that is tied to the card, and the format would destroy the app. 2. It did not support multitasking at the time that I looked at it. 3. There were no mapping apps that meet my requirements that list support for WP7. I do not need the "phone" part, but I would consider getting a WP7 phone to replace my PocketPC if these issues were cleared up.

Anonymous 09/16/2011 5:49 AM
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I have a htc hd7 and i like it a lot and now having manjo, the major improvements from nodo to mango is dramatic. I think that windows phone will be able to surpass ios in a couple of years. The reason why is because when people realize that apple iphones were just a fad and their hardware behind their phone is obsolete compared to many android phones and the new wp7 phones.

otacon72 09/16/2011 6:02 AM
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Gates knew when it was time to leave. It's time for Ballmer to leave. He did good with Windows 7 but it's time to turn the company over to new leadership.

Even though I don't like Apple we haven't heard anything about Steve Jobs since he resigned. Leads me to believe he's not well.

tramit 09/16/2011 6:33 AM
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The concept is nice, but the sales aren't there. People are being acclimated to the iOS and Android interface and with the progression of time, I still believe they have their work cut out for them. That won't change much with Windows 8 either when most people still associate a Windows OS to correlate with PCs. Not everyone is a tech head, therefore, people born in the Millennium Era are also proned to branding. Android and iOS have been engraved into a huge portion of this communicating population.

haplo602 09/16/2011 7:27 AM
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can WP7 sync directly to outlook ? no exchange or any stupid cloud but direct Outlook ? That's why I don't have Android.

back_by_demand 09/16/2011 8:06 AM
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I have WP7 and it is sweet, when I get the Mango upgrade I will be lording it over Android and iPhone users everywhere

back_by_demand 09/16/2011 8:08 AM
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otacon72 :
Even though I don't like Apple we haven't heard anything about Steve Jobs since he resigned. Leads me to believe he's not well.


It is a well known fact that Jobs has been fighting pancreatic cancer for YEARS
With your astute detective skills have you thought about working for the City Homicide department?

Anonymous 09/16/2011 8:34 AM
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Allow users to modify mango as they like, add in file manager and registry support. You'll get a large boost in your sale of WP7. Don't do that, and all you can say to the press is We haven’t sold quite as many as I would have liked...… I'm not saying I love where we are, but I am very optimistic on where we can be.

back_by_demand 09/16/2011 9:13 AM
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Tommy1979 :
Allow users to modify mango as they like, add in file manager and registry support. You'll get a large boost in your sale of WP7. Don't do that, and all you can say to the press is We haven’t sold quite as many as I would have liked...… I'm not saying I love where we are, but I am very optimistic on where we can be.


I had a WM6.5 phone and it allowed all that stuff, almost like a desktop OS, but I had my laptop with me as well, I wanted something fast and easy to use, WP7 is a breath of fresh air.

JOSHSKORN 09/16/2011 10:37 AM
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If Microsoft wants Windows Phone to sell, they need to do the same thing as the ATRIX 4G, basically be able to turn it into a laptop or run your Desktop from a cell phone. Yes, that would mean your mobile phone would have to be able to play Crysis.

eddieroolz 09/16/2011 12:10 PM
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Considering Microsoft is going against a sea of media that's biased for either Android and iOS, I am not surprised. In fact I'm amazed Microsoft has sold this many despite going against pretty much everyone in the tech industry.

neon871 09/16/2011 1:16 PM
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Blue screen of death on my smart phone just didn't appeal to me so I went Android

equ7 09/16/2011 2:08 PM
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Looks like "every one" that has bought a WP7 can commented above. I still have never seen a WP7 "in the wild". And as Microsofts normal responce to sales failure is a new version. Whats you bet for a summer 2012 launch of WP8?

noonin 09/16/2011 2:13 PM
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How does a company with so many resources, past success, and potential, put up with a clown like Steve Ballmer?

back_by_demand 09/16/2011 2:16 PM
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JOSHSKORN :
If Microsoft wants Windows Phone to sell, they need to do the same thing as the ATRIX 4G, basically be able to turn it into a laptop or run your Desktop from a cell phone. Yes, that would mean your mobile phone would have to be able to play Crysis.


And that again is hardware, not software, what exactly do you think Microsoft does as a company?

Lewis57 09/16/2011 3:09 PM
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I have a HTC HD7 and I bought it without trying WP7 at all...I totally love it, it's unique, which is a nice change for Microsoft.

It is lacking in many areas but you have to keep in mind it is a first release, every little niggle I have with the operating system has been covered in Mango, so I really can't wait for Mango release.

It is easy to see why sales are lacking though, firstly they are new to the scene, that's always not going to help sales, secondly you have the cliche iSuperior users that would never deviate away from their beloved Apple. Then the other side of the market is owned by Android users who in general are casual and don't care what operating system they are using, as long as it is good, most of which probably wouldn't even know what WP is, nor would they care because their phone does everything they want.

I don't watch a lot of TV and Ads are banned on my Mozilla, but I can't say I've ever seen a WP advert, but I've seen plenty of iPhone adverts. They could help themselves by sticking ads in Windows Live Messenger or something.

obsidian86 09/16/2011 3:39 PM
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google vs microsoft

looks like google got got the jump on microsoft

candrwhite 09/16/2011 3:56 PM
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neon871 :
Blue screen of death on my smart phone just didn't appeal to me so I went Android



The black ones do, then?

spookyman 09/16/2011 4:00 PM
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That is cause Microsoft does not know how to market things anymore.

A few years ago they where going to do Retail stores similar to the Apple Store. What happen to that idea?

Come on Microsoft despite what critics think, you have great products. No one knows them because you won't market them.

volkii 09/16/2011 4:11 PM
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haplo602 09/16/2011 7:27 AM

can WP7 sync directly to outlook ? no exchange or any stupid cloud but direct Outlook ? That's why I don't have Android.

That is incorrect. WP 7 cannot connect directly with Outlook. You must use a Windows Live account to sync Outlook, then sync the Windows Live to the Phone. I returned my WP7 phone for that exact reason. I live in a rural area where Cell service and Wi-Fi are not always present. I need the ability for a direct connection. There is a group of people that want this feature back and Microsoft is really not that interested.

As far as Android not syncing to Outlook, get an HTC phone. I just set up a Verizon one for my mom to replace her Blackberry. HTC's sync program to Outlook works great.

volkii 09/16/2011 4:11 PM
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haplo602 09/16/2011 7:27 AM

can WP7 sync directly to outlook ? no exchange or any stupid cloud but direct Outlook ? That's why I don't have Android.

That is incorrect. WP 7 cannot connect directly with Outlook. You must use a Windows Live account to sync Outlook, then sync the Windows Live to the Phone. I returned my WP7 phone for that exact reason. I live in a rural area where Cell service and Wi-Fi are not always present. I need the ability for a direct connection. There is a group of people that want this feature back and Microsoft is really not that interested.

As far as Android not syncing to Outlook, get an HTC phone. I just set up a Verizon one for my mom to replace her Blackberry. HTC's sync program to Outlook works great.

shiboe 09/16/2011 4:38 PM
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There really is nothing to worry about, and he (and MS) need to have some faith in their product. The big point to be made is, contracts are skewing the sales. 2 years after the release is when we will know how WP7 is fairing in the market, until then many, myself included, are immune to however great the device may be, since we are chained to an existing contract.

Everything I've heard from actual owners as positive, and if they can maintain this perception through the contract stalemate period, it is going to pay off big time. That said, I wouldn't expect android to sit idly by now that WP7 has shown you can be innovative and not be Apple.

IMO, WP7 needs to continue to refine it's pretty interface to perfection (that really is a large selling point), and keep adding useful features while NOT bloating the system (ie putting efficiency of code first). That's the phone I want, and it's available in 1.5 years, I'll be a customer.

igot1forya 09/16/2011 4:57 PM
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neon871 :
Blue screen of death on my smart phone just didn't appeal to me so I went Android


I agree, though admittedly the dreaded and seemingly common "Force Close" isn't that much better.

dredg98 09/16/2011 5:49 PM
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I cant wait to get a windows phone 7 HTC Titan! Cell phone carriers are also hindering it because there promoting iphones and android phone more!

Anonymous 09/16/2011 5:51 PM
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How can anyone like WP7?? It is most obsolete and least functional phone OS.
I have HTC Trophy and it's annoying. You can't transfer files through Bluetooth. Doesn't have file manager, so you cant group files into folders. You must sync through Zune, cant use it as USB storage. Marketplace is poor.
Its good only for music, videos and occasional web surfing.
For serious work avoid this OS.
Hopefully I didnt buy HTC Trophy but got it in my company, and I am returning it asap.
Will get Sensation or something else with which I can actually work.