Microsoft suffered its worst quarterly loss in the second quarter thanks in large part to its $7.5 billion writedown of its purchase of Nokia's devices and services business. Yet Microsoft CEO Satya Nadella said the software firm remains committed to smartphones and the broader mobile market as it prepares to unveil Windows 10, its newest operating system. He said that Microsoft would in particular focus on being more efficient in the entry-level smartphone market.
There is clearly still a market for flagship smartphones. They excite fans of the brands that make them and often serve as the reference point for the company's design language that filters down to mid-range and lower-end phones. But the days of the flagship smartphone as the be-all, end-all product for smartphone companies are over.
How did the wireless industry perform in the second quarter of 2015? In this earnings summary, we list results from the wireless industry's carriers, handset makers, equipment suppliers and others.
Microsoft CEO Satya Nadella reaffirmed his commitment to the smartphone market and said that Microsoft has a broader view of its mobile strategy than just building phones itself. The comments, in an interview with ZDNet, come a week after the software giant said it would cut around 7,800 jobs, mostly from its phone business, and record an impairment charge of around $7.6 billion related to its purchase of Nokia's devices and services business.
They say a picture is worth a thousand words. If that's the case, then the Twitter header image for Microsoft CEO Satya Nadella demonstrates that perfectly. Just look at Nadella's tortured smile then try to make sense of the picture in the header. It resembles some kind of hellish, hopelessly complex landscape that maybe someone at Microsoft understands and loves. But, for a company that wants to solve problems, it's the wrong way to start. Nonetheless, it does provide the perfect illustration of what is and isn't happening at Microsoft.
It looks as though Microsoft is getting a little help from its friends at iPass in order to offer Wi-Fi.
Companies like Google, Republic Wireless and others are taking advantage of this trend by offering "Wi-Fi-first" service plans that push users' data traffic onto Wi-Fi networks if they are available, and fall back only to cellular when necessary (thereby keeping costs low). But such services may be the start of something much bigger.
A Microsoft decision to lay off close to 8,000 staff and take a $7.6 billion (€6.8 billion) hit on its mobile phone business is regarded as tantamout to an admission that the company has failed in the broader wireless hardware market as well as in its bid to keep the Windows operating system (OS) relevant.
In what sure sounds like a case of strange bedfellows, the National Association of Broadcasters (NAB), the Radio & Television Digital News Association, Microsoft, Open Technology Institute at New America, Public Knowledge, Free Press and Common Cause are among the parties jointly asking the FCC to back off a staff recommendation to relocate TV stations in the duplex gap after next year's incentive auction.
Microsoft said it will cut around 7,800 jobs, mostly from its phone business, and record an impairment charge of around $7.6 billion related to its purchase of Nokia's devices and services business. The layoffs and restructuring charges are the latest indication that Microsoft has not been able to gain traction in the smartphone market following its $7.2 billion deal for Nokia's handset business, which closed in April 2014.