According to a Taiwanese newspaper, producers have lost interest in Windows Phone for two main reasons, the excessive cost of licenses & monopoly of Nokia.
When Windows Phone 8 was announced, Nokia, Samsung, HTC and Huawei were the four partners who planned the launch of new smartphones. A year on, not only the number of manufacturers has remained same, but also the “friends” producing for Redmond Company’s operating system seem to have abandoned the platform. In recent months, only Nokia has introduced other devices in the Lumia series while Samsung, HTC and Huawei have kept their mouth shut.
According to the Taiwanese newspaper Digitimes, the producers have lost their interest in Windows Phone for two main reasons, the excessive cost of licenses and the monopoly of Nokia. To reduce the impasse, Microsoft should reduce its financial claims and provide the platform at lower prices. The Company should apply the same strategy planned for the small Windows RT tablets. On the rival side, producers can get more profit from Android as there is no cost of license as well as having more customizations options than Windows Phone.
The second problem is Nokia. According to the IDC, the market share of mobile operating system is equal to 3.2% and Nokia accounts for over 70% of the total sales of smartphones. Considering the lack of consumer interest in the platform, the other producers are likely to compete against the giant Finnish manufacturer. ZTE and Asus had planned launch of new Windows Phone 8 devices, but held those plans due to unwillingness of Microsoft to lower the licensing cost for Windows Phone 8.
Acer expects an increase in the market share before starting the production of a smartphone. Allen Burnes, Acer vice president of smartphones for the EMEA region stated “We think Windows Phone 8 is a great OS… but I think no-one knows about it” suitable for both leisure or work but “it just doesn’t sell enough at this moment”. Microsoft needs to do more to attract a more number of customers.