Bloomberg reported that
) has been in talks with HTC Corporation about the possible
addition of its Windows Phone operating system to Android
handsets manufactured by HTC at practically no extra cost. This
is obviously an attempt on the part of Microsoft to increase its
mobile market share. There has been no confirmation of the report
from either of the companies.
Microsoft had recently acquired
) handset business for $7.2 billion to facilitate hardware and
software integration. It also hoped to target the lower-end of
the market, especially in developing countries where Nokia is
still a much-loved brand. Nokia's Windows-based phones have also
been doing rather well in Europe, so it was expected that more
compelling offerings would help the company take market share.
Other phone-makers using the Windows OS would naturally view this
as increased competition from Microsoft itself, so this could be
the reason Microsoft decided to woo HTC.
HTC has manufactured both Windows and Android phones in the past.
However, seeing the falling demand for Windows Phone, it has not
launched any new Windows-based handset since June this year and
has no plans of launching any in the near future.
Microsoft normally charges a license fee for every Windows Phone
sold but now as an endeavour to boost sales it has even agreed to
give HTC certain concessions in the form of reduction or
elimination of license fees.
There has been speculation about a hypothetical phone, which may
run Windows and Android simultaneously or allow users to select a
default system. It is also unclear whether the data for an
application running on a specific operating system would be
available on the other one, including contact details and photos.
As per reports of market research firm IDC, in the second-quarter
) Android OS was the leading smartphone operating system with a
79% share of the total market, followed by
) iOS with a 13% share and Windows trailing behind with 3.7%.
Microsoft Corporation develops, manufactures, licenses, sells,
and supports software products. The company operates in five
segments: Windows & Windows Live Division, Server and Tools,
Online Services Division, Microsoft Business Division, and
Entertainment and Devices Division.
Currently, Microsoft has a Zacks Rank # 3 (Hold).
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