Windows Phone Market Share Slips Further

+46.95%
Upside
253
Market
371
Trefis
MSFT: Microsoft logo
MSFT
Microsoft

Microsoft (NASDAQ:MSFT) has been spending huge amounts on marketing the Windows Phone, trying to gain market share in the highly competitive smartphone market currently dominated by Apple’s (NASDAQ:AAPL) iOS and Google‘s (NASDAQ:GOOG) Android. However, it hasn’t been able to gain much traction yet. While we expect it to become the third most popular smartphone platform after Android and iOS eventually, the sales numbers tell an entirely different story. [1]

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Market share numbers predict a bleak future for Windows Phone

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A report by Gartner reveals that Microsoft’s market share in the worldwide smartphone market tumbled from 2.6% a year ago to around 1.9% in the first quarter of 2012.

At this rate, Microsoft may never be able to gain enough traction to become a major player and may simply be relegated to the sidelines while Google and Apple share the spoils in the very lucrative smartphone space.

Though Nokia’s new Windows Phones like the Lumia 900 have received rave reviews, for some reason, they haven’t translated into sales. This may change going forward, as Microsoft continues to invest in the platform and positions it as a viable alternative to the iPhone and Android phones, but as of now, it seems like a long shot.

Windows Phone, Xbox and other entertainment devices account for nearly 4% of Microsoft’s $40 Trefis price estimate, which stands nearly 30% above its market price.

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Notes:
  1. Microsoft’s smartphone market share tumbles 27%. Will Windows Phone ever gain traction?, Computer World []