Microsoft Readying a New Breed of Dual Core, LTE Windows Phone Devices
Microsoft (NASDAQ:MSFT) announced that its partners will be launching new Windows Phone 7.5 models with dual core processors and LTE connectivity soon. [1] Microsoft recently launched the Windows Phone 7.5 Mango upgrade for all Windows Phone smartphones, which brings over 500 new features to Microsoft’s latest foray in the mobile space. While Google‘s (NASDAQ:GOOG) Android and Apple‘s (NASDAQ:AAPL) iOS currently dominate the smartphone space in terms of market share, Microsoft’s Windows Phone 7 is expected to become one of the top three platforms by 2015. While Microsoft is doing well in the software part, most Windows Phone devices lag far behind Android smartphones and the iPhone when it comes to hardware.
We currently have a $28 Trefis price estimate for Microsoft, which stands nearly 5% above its current market price. Windows Phone, along with the Xbox, currently accounts for only around 8% of Microsoft’s total price estimate, as part of Microsoft’s Entertainment and Devices division.
Check out our complete analysis for Microsoft.
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Microsoft Pushing Windows Phone Heavily With Support from Major Manufacturers
Microsoft announced that new dual core smartphones equipped with LTE (long term evolution) connectivity will be launched soon, making them competitive with new Android devices like the Samsung Galaxy S 2, and the new iPhone 4S.
Most major smartphone manufacturers like Nokia, Samsung, HTC, Dell, LG and others have tied up with Microsoft to build smartphones powered by its new OS. However, Windows Phone device sales have not been up to expectations, according to Steve Ballmer himself. Microsoft still makes more money from Android patent licensing than it does by selling licenses of Windows Phone OS to its hardware partners.
We expect Windows Phone to become a significant revenue driver for Microsoft in the coming years, but Windows and Office are expected to always remain its primary moneymakers.
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