NOTE: My original post, originally published in January 2013, continues to be one of the most viewed on the site.  Android and Apple have enjoyed an estimated 98% market share between the two, and many of my earlier projections regarding this market appear to have been borne out. However, the smartphone market has now matured to the point that it is at a strategic inflection point which has major implications for the future of this market and the major competitors. The rapid maturation of the smartphone market should have been foreseen: the rise of domestic Chinese competition combined with the predictable end of the Western consumer fascination with “the next smartphone”

Advertisements

Microsoft Missed Key Strategic Inflection Points. Much has been written this week about the announcement from Steve Ballmer that he will resign from Microsoft within a year. Microsoft shares bounced upward on the news, giving an indication of investor sentiment, which might have been expected to drive the stock down. Some bloggers have commented with praise on his 13 years as President of Microsoft. But no less than Walt Mossberg of the Wall Street Journal, who also writes for All Things D, quietly tweeted an endorsement of the blog post below by Lauren Goode at “All Things D.” Goode chronicles the major product and strategic events over Ballmer’s helmsmanship of Microsoft. Perhaps the most glaring blunder has to be also the most recent: Windows 8.

Readers of this blog will recall last week’s post on the International Data Corporation’s (IDC) report on the mobile phone market. The problems for both Microsoft and Blackberry were exposed again for all to see. Microsoft’s Windows Phone market share at 3.7%, would have been even smaller without Nokia. Blackberry’s situation was even more dire. A few months back Microsoft and Blackberry opened another new patent war on each other, as if this would somehow help their situations.

This week Blackberry has announced the inevitable search for a potential buyer to take the company private, as has also happened recently with Dell Computer. The suggestion that Ballmer and Microsoft should consider purchasing Blackberry is actually a potentially very interesting idea. A broader market consolidation, with much larger implications, may be on the horizon.

NOTE: This post, originally published in January 2013, continues to be one of the most viewed on the […]