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Windows Phone Stuck with 4 Percent Market Share in 2012

By - Source: Strategy Analytics | B 39 comments

Strategy Analytics is, at least to our knowledge, the first market research firm that believes that Windows Phone 8 will not be enough to help Microsoft capture a greater market share in the smartphone arena.

In an updated market forecast, the company said that that "future versions of Microsoft’s Windows Phone 8 platform will need to dramatically improve support for advanced technologies like multi-core chipsets, enhance the Marketplace app store, [and] expand the number of phone models available from major partners like Nokia or Samsung." Strategy Analytics also noted that Microsoft should consider lowering the license fees per unit.

For now, it appears that the market share of Windows Phoen devices, is growing, albeit not at the pace Microsoft would want. For 2012, Strategy Analytics estimates shipments of about 5 million Windows Phones, up from 3.5 million in 2011. The impact of praised phones such as Nokia's Lumia 900 is not as strong as anticipated. The increase in sales will give Microsoft about 4.1 percent market share, up from 3.5 percent in 2011, if Strategy Analytics is correct.

"Despite ongoing economic volatility, we forecast 123 million smartphones to be sold in the United States in 2012, growing 21 percent from 102 million units in 2011," said Strategy Analytics analyst Scott Bicheno. "Microsoft captured 3 percent share of all smartphones sold in the United States during 2011, rising steadily to a forecast 4 percent share in 2012. Nokia, HTC and Samsung have some of the biggest Microsoft smartphone portfolios at present and they will be three main hardware vendors driving growth this year."

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  • 11 Hide
    KidABear , July 19, 2012 2:31 PM
    On my second WP7 now. Originally had a Samsung Focus and recently picked up a Nokia Lumia 900. I love the OS; it does everything I ask quickly.

    My main issue with WP7 is that app arena is so limited. I always see all these advertisements for bank account management, car starters, OBD-II functions, etc. and they always say "For iOS and Android." It's so rare that these apps are developed for WP7 and it frustrates me.
  • 10 Hide
    s3anister , July 19, 2012 2:18 PM
    I think part of the problem for late introduction phone Operating Systems like WP7/8 is that most everyone are tied to their carrier with a two year plan, making their upgrades (most likely) a year or two out from the release date of any Windows phone.

    As for myself, I'm just not looking to buy a new phone when all the decent models are overpriced without the two year contract...
Other Comments
  • -4 Hide
    bob_38 , July 19, 2012 2:08 PM
    You just said "Phoen"
    The correct spelling is "Pwned"
  • 10 Hide
    s3anister , July 19, 2012 2:18 PM
    I think part of the problem for late introduction phone Operating Systems like WP7/8 is that most everyone are tied to their carrier with a two year plan, making their upgrades (most likely) a year or two out from the release date of any Windows phone.

    As for myself, I'm just not looking to buy a new phone when all the decent models are overpriced without the two year contract...
  • 1 Hide
    win7guru , July 19, 2012 2:22 PM
    I bought a HTC surround on ebay refurbished for $100 and enjoy a no contract unlimited data plan on T-Mobile for $50 a month. Mango is a pretty great OS for a phone.
  • 11 Hide
    KidABear , July 19, 2012 2:31 PM
    On my second WP7 now. Originally had a Samsung Focus and recently picked up a Nokia Lumia 900. I love the OS; it does everything I ask quickly.

    My main issue with WP7 is that app arena is so limited. I always see all these advertisements for bank account management, car starters, OBD-II functions, etc. and they always say "For iOS and Android." It's so rare that these apps are developed for WP7 and it frustrates me.
  • -4 Hide
    syrious1 , July 19, 2012 2:32 PM
    s3anisterI think part of the problem for late introduction phone Operating Systems like WP7/8 is that most everyone are tied to their carrier with a two year plan, making their upgrades (most likely) a year or two out from the release date of any Windows phone.As for myself, I'm just not looking to buy a new phone when all the decent models are overpriced without the two year contract...


    Not to mention there are currently no Windows Phone devices on the market now that will even support WP8. They basically shot themselves in the foot, only an idiot would buy a lumia right now and get locked to a contract.
  • -5 Hide
    Marco925 , July 19, 2012 2:39 PM
    Smoked by Windows phone? More like Smoked by everyone else :p 
  • 6 Hide
    jldevoy , July 19, 2012 2:44 PM
    I'm guessing sales will have plummeted recently as people wait to see the new wp8 phones.
  • 0 Hide
    john_4 , July 19, 2012 2:59 PM
    Tiles are not catching on as fast as MS wants.
  • 1 Hide
    whiteodian , July 19, 2012 3:41 PM
    I've been on a 3GS for 3 years now. I almost jumped ship to android, but couldn't make up my mind between the GSII and the Nexus. So I decided investigate these windows phones with the mango OS. I heard good things. However, I knew 8 would be coming and finally dual core plus other features available on Androids would be available. I'm still waiting. Microsoft is too slow.
  • -3 Hide
    ejb222 , July 19, 2012 3:52 PM
    Moved from iPhone to Lumia 900...love the phone. Love the OS. Once you use WP7 you realize the iOS is really outdated. And WP7s TellMe does basically everything already that Siri will do in the next update. WP8 will be a big hit...especially with the hardware upgrades. Hope Nokia comes out with Pureview Lumia. What will compete with that? 41mp camera, dual or quad core, 4.7in HD screen, NFC, etc. Sounds good to me.

    Never owned and Android, but judging by roommates phone and my gf phone, they are pretty lame. My pops has an OneX, that's pretty sweet, but only because of the custom ROM...but while he tinkers all the time...I just use my phone...no tinkering needed.
  • -2 Hide
    Anonymous , July 19, 2012 3:52 PM
    Two main reasons windows phone has 4% market share.

    1) Lack of apps found on iOS and Android ( i.e. Crackle, Firefox, Online banking apps like Capital One, ABC TV viewer, Time Warner Cable viewer ... the list goes on)

    and 2) No Flash support.

    The OS itself is very alluring (I'd rather have a windows phone in my pocket than an apple or android device based on its sheer coolness factor) but without 1 and 2 above. I remain with "the other 96%".
  • 2 Hide
    belardo , July 19, 2012 3:55 PM
    kidabearOriginally had a Samsung Focus and recently picked up a Nokia Lumia 900. I love the OS; it does everything I ask quickly. My main issue with WP7 is that app arena is so limited. I always see all these advertisements for bank account management, car starters, OBD-II functions, etc. and they always say "For iOS and Android." It's so rare that these apps are developed for WP7 and it frustrates me.
    And you WILL not ever see another new APP for the WP7 platform... MS orphaned it... yep. WP8 Apps will not RUN on WP7 devices. Developers don't develop for EOL devices... in 3~4 months, WP8 hits the market.... your Nokia 900 is stuck where it is for the next 2 years.

    The 3.5 > 4.1 market share is for ALL Microsoft Mobile devices. WP7 is still at or under 2%.

    LOL, the WP Launcher for my Android is more advanced than WP8 in some ways. :)  I was going to get a Lumia or perhaps a Samsung... Naa, Go Android and get the Apps and flexibility. (Its just the launcher, not the social connection of apps)
  • -2 Hide
    Anonymous , July 19, 2012 4:17 PM
    Windows phone 8 is coming!
    http://www.techatron.net/
  • 1 Hide
    KidABear , July 19, 2012 4:45 PM
    belardoAnd you WILL not ever see another new APP for the WP7 platform... MS orphaned it... yep. WP8 Apps will not RUN on WP7 devices. Developers don't develop for EOL devices... in 3~4 months, WP8 hits the market.... your Nokia 900 is stuck where it is for the next 2 years.The 3.5 > 4.1 market share is for ALL Microsoft Mobile devices. WP7 is still at or under 2%.LOL, the WP Launcher for my Android is more advanced than WP8 in some ways. I was going to get a Lumia or perhaps a Samsung... Naa, Go Android and get the Apps and flexibility. (Its just the launcher, not the social connection of apps)


    I'm aware of this. At the time of upgrade to a Lumia, my Focus was fading fast. There were issues with the lock button that caused the phone to power down randomly and with no warning. I had the choice of paying my $70 insurance deductible for a refurbished Focus or $99 for a Lumia. I chose the latter. While I'm sure WP8 will be great, I figure the launch phones will be succeeded by even better ones right about the time when I'm ready to upgrade.
  • 3 Hide
    ejb222 , July 19, 2012 4:53 PM
    belardoAnd you WILL not ever see another new APP for the WP7 platform... MS orphaned it... yep. WP8 Apps will not RUN on WP7 devices. Developers don't develop for EOL devices... in 3~4 months, WP8 hits the market.... your Nokia 900 is stuck where it is for the next 2 years.The 3.5 > 4.1 market share is for ALL Microsoft Mobile devices. WP7 is still at or under 2%.LOL, the WP Launcher for my Android is more advanced than WP8 in some ways. I was going to get a Lumia or perhaps a Samsung... Naa, Go Android and get the Apps and flexibility. (Its just the launcher, not the social connection of apps)


    Actually you are quite wrong. Apps are currently, and will continue to be developed. Example is that we will be getting Zenga Apps in the fall. Not only that, but developers who develope for WP8 and W8 can easily develope for WP7 with little changes unless its native coding. And no developer is going to drop their guaranteed marketshare of WP7 app developement to start developing for WP8 thats not even out yet. Yes they are working on WP8 apps, but that doesn't mean they dropped support for their WP7 apps...i get updates all the time.
    Please if you have a gripe with WP7 thats fine, but know what you are talking about please. Yeah...they may not have 500,000 apps. but out of the 100,000 that they have, I've found 40-50 to hold me over just as well as anyones android or iphone. My life is prefectly fullfilled without a few thousand fart apps. I got BoA, Angry Birds, Youtube downloader, Wordament, FB, Twitter, Lin, 4sqr, Kindle, Ebay, Netflix, etc...even an app with all 150+ Tom and Jerry Episodes...I'm sure there are other cool games etc that will come over from the Android and iPhone market. Plus if I waited around for a couple years with my iPhone for good apps...I can do the same for 6 months for WP8. its about the total experience. WP is better experience and a better springboard.

  • 6 Hide
    killerb255 , July 19, 2012 4:55 PM
    I think that WP7's poor market share is the biggest reason why Metro is being forced to the Desktop, much to the dismay of many seasoned Windows PC power users...
  • -1 Hide
    ejb222 , July 19, 2012 4:59 PM
    killerb255I think that WP7's poor market share is the biggest reason why Metro is being forced to the Desktop, much to the dismay of many seasoned Windows PC power users...


    Actually Metro is the reason for WP7 and WP8. Its not being forced to Desktops...it was the plan all along...one integrated system. And the dismay of the power users is nothing more than childish. Read their comments. The blatant 'this sucks" attitude is never backed by any reasoning or facts. Its purely preference. But those who await W8 can list off all the reasons why it should be adopted. Given the choice of who to follow(if I was to follow), I'd rather follow the educated and level minded than those who have nothing better to do than to troll on forums about a new start screen and missing start button.
  • 1 Hide
    eddieroolz , July 19, 2012 6:05 PM
    Well, its a nice first step. Whether Microsoft can unseat RIM is a matter of debate however. Even with a "burning platform" and a "outdated OS" that renders RIM "dead" as many claim, they still have a 12% share in US alone.
  • 6 Hide
    kiniku , July 19, 2012 6:15 PM
    I bought the Nokia 900 and gave W7P a serious try. The I.E. only browser is a functional joke compared to the choices available to Android. The Zune application sync method is cumbersome and I can only think its an attempt to look like iTunes. No thanks on that. One would think a Microsoft phone OS would allow a USB connection as an "external storage devices" on Windows? No separate tones for multiple email accounts? And last the camera on the Lumia 900 is junk compared to the competition.

    W7P does have some decently cool features. The Live tile thing, if an app is written to take advantage of is pretty innovative. But the comparative lack of applications, limited functionality compared to ICS, and Metro's lock on everything made me very happy to return in in my 30 day window and get a SGIII. Very glad to be back with Android.
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