March 29, 2020
Why Windows Phone Failed – And How They Could’ve Saved It

Why Windows Phone Failed – And How They Could’ve Saved It

Windows Phone: a product with so much potential
that had everything going for it, and yet one that failed spectacularly. Despite the billions of dollars and the priceless
connections of Microsoft, the Windows Phone never took off and would go down in history
as one of Microsoft’s most expensive mistakes. In this video, we’re gonna look at the reasons
behind its failure and the actions Microsoft could’ve taken to possibly prevent it. This video is brought to you by Dashlane. Keep your passwords safe and strong across
all your devices by registering with the link in the description. When Steve Jobs announced the iPhone in 2007
he took the smartphone world by storm. Well, how do I scroll through my list of artists? How do I do this? I just take my finger and I scroll. Up until then, smartphones had a big problem:
they had small screens with interfaces that were hard to navigate, and the reason for
that was because half of the phone was occupied by a keyboard with tiny buttons you could
hardly press with any precision at all. What Steve Jobs showed to his extatic audience
was a game changer, but it wasn’t just Apple fans there were watching. The engineers at Google, which for the past
two years had been building a smartphone of their own, had to scrap their entire project
and to start over with a touchscreen design. Their final product, Android, would arrive
more than a year later, at which point the iPhone had taken the smartphone crown. The iPhone’s model was built on exclusivity:
it was entirely produced by Apple to establish maximal control over the user experience and
the quality of the product, which allowed Apple to charge a premium for their phones. To succeed Android would have to adopt a different
strategy: instead of going for exclusivity, Google tried to be everyone’s friend, partnering
up with as many phone manufacturers as possible with the selling point of their phones being
the fact that they were cheap, yet functional. For a time, the smartphone world was in balance,
with Android and the iPhone occupying very distinct segments of the market. And yet, this balance would soon be disturbed
by another tech giant, Microsoft. Now, out of the three companies, it was actually
Microsoft that had the most experience with mobile devices. Back in 1996 Bill Gates unveiled what he called
the handheld PC, which was really more of a tiny laptop. I’ve asked Tom McGill from the Windows CE
group to join me on stage and give us a quick glimpse of some of the neat things that are
built into the handheld PC. For those of you that might not have seen
one yet, Bill talked a little bit about the handheld PC and this happens to be the Casio
unit actually. The Casio unit is typical of the handheld
PC, so it’s got a physical keyboard, a 480×240 2 bit per pixel screen, IR, PC card, upgradeable
RAM, 2 AA batteries. So this is a pretty typical handheld PC. The operating system it ran was known as Windows
CE, which was basically Windows 3 modified to function on the lowest specifications possible. Over the next decade, Microsoft would add
features and develop this product line extensively, making another 6 full releases. Between 2006 and 2008 Microsoft’s mobile
devices claimed a 15% market share, greater than any of their competitors except Symbian
by Nokia. But this success is exactly what blinded Microsoft
to threat of the iPhone. When Steve Ballmer, the CEO of Microsoft at
the time was asked about the iPhone his reaction, well, let’s say it hasn’t aged very well. Steve let me ask you the iPhone and the Zune
if I may. Zune was getting some traction and Steve Jobs
goes to Macworld and he pulls out this iPhone. What was your first reaction when you saw
that? $500, fully subsidized with a plan! I said, ‘that is the most expensive phone
in the world’ and it doesn’t appeal to business customers because it doesn’t have a keyboard,
which makes it not a very good email machine. What’s even more priceless, however, is
the frankness of the next question. How do you compete with that though? He sucked out a lot of the spotlight in the
last few weeks because of what happened at Macworld, not only with the iPhone, but with
the new iPod. How do you compete with that, with the Zune? Right now, well, let’s take phones first. Right now we’re selling millions and millions
and millions of phones a year. Apple is selling zero phones a year. Notice the stark difference between the two
men: the reporter very clearly sees the innovations of the iPhone as a threat to the old smartphone
establishment, but Microsoft’s CEO can barely look past the sales numbers. And just in case you’re thinking he’s
an exception, the CEOs of Blackberry and Palm were equally skeptical of the new iPhone. It took Microsoft a full year of declining
market share to finally realize that something had to be done. Unlike Microsoft, Blackberry’s sales were
still increasing, which gave them a sense of confidence they never recovered from. Now as they say, it’s better late than never
and when Microsoft finally got around to it, their development was actually pretty fast. Microsoft began developing a touchscreen based
mobile device in late 2008 and it took them only two years to get it ready for market. What Steve Ballmer unveiled was indeed a very
unique product whose advancement of smartphone design isn’t really widely recognized, but
it should be. At a time when the iPhone and Android were
stuck with static icons, the Windows Phone gave you tiles with live information. Overall, critics had much to praise: in terms
of design the Windows Phone user experience was right up there next to Apple and because
Microsoft had very strict requirements for the hardware used by phone manufacturers,
all of the early Windows Phones were very powerful machines for their time. And yet, Microsoft ran into a big problem
very early on. You see, Microsoft was trying to do something
very difficult: it was emulating Apple in trying to establish strict control over the
user experience and hardware, but unlike Apple it wasn’t actually making its own phones. This approach made the Windows Phone a very
refined product, but the degree of control Microsoft wanted made working with them much
more difficult for phone manufacturers compared to working with Android. Unsurprisingly, most phone manufacturers decided
to partner up with Google, which left Microsoft in a very bad position: it had a great product
and no one to make it. The only saving grace for Microsoft was a
lucky connection: when Nokia replaced their CEO in September 2010, the new guy, Stephen
Elop, was a former Microsoft executive and the first item on his agenda was to try to
restore Nokia’s declining market share by abandoning Symbian and pivoting towards Windows
Phone. Now, you can tell that this was a very premeditated
plan because this massive transition, during which Nokia completely changed their product
offerings, happened in the span of a single year. Nokia started selling their first Windows
Phone in November 2011 and I can tell you right away that this was possible thanks to
the billions of dollars Microsoft poured into Nokia as “platform support payments”. Nokia was supposedly paying Microsoft a licensing
fee, but in reality it was actually getting $250 million back from Microsoft every quarter,
which more than made up for their expenses. Of course, the other phone manufacturers knew
that this was happening, which pushed them even farther away from Microsoft. After all, why would they fund their own development
and pay a licensing fee to Microsoft, when Nokia was getting it all for free? Effectively, Microsoft had gone all in with
Nokia and there was no going back. But sadly for Microsoft, it was far too late. By the time Microsoft solved its production
issue, four years after the introduction of the iPhone, it had fallen to a 2% market share. Nobody was developing applications for the
Windows Phone and why would they, considering that Android and iOS were clearly the winners
here. For its first three years, the Windows Phone
App Store was empty: it didn’t have Instagram, it didn’t have YouTube, it barely had anything. By 2013 the stock price of Nokia had fallen
by 75% at which point angry shareholders were threatening to just fire Stephen Elop and
get rid of Microsoft altogether. In the end, that didn’t happen: Microsoft
instead just purchased Nokia’s mobile phone division for $7.2 billion in 2014. Here’s the funny thing though: the very
next year Microsoft wrote off their investment for $7.6 billion, and then to top things off
they fired almost 8,000 employees. Microsoft kept Windows Phone on life support
until October 2017, but it was clearly dead a long time before that. And yet, it’s easy to imagine the different
path Windows Phone could’ve taken had it only not been as greedy with its original
philosophy. Had Microsoft been willing to compromise on
its control over production, it would’ve easily convinced the big manufacturers to
use Windows Phone instead of Android. After all back then Google had practically
no ecosystem to speak of, while Microsoft had been a software titan for decades. There’s a lesson to be learned here about
the importance of compromising in business, but there’s one sphere in life where you
shouldn’t compromise and that is keeping all your passwords secure. Luckily for you, with Dashlane managing your
passwords is a breeze. Dashlane can generate strong passwords and
can store them safely across all of your devices, automatically filling them in when you need
them. Dashlane is available on every popular desktop
and mobile device, and it would’ve even been available on Windows Phone if Microsoft
hadn’t screwed it up. On top of managing your passwords, Dashlane
also offers a VPN for every one of your devices, and it also monitors the Dark Web to make
sure your data hasn’t been leaked by hackers. You’re probably catching my drift here,
but Dashlane really is great. So great, in fact, that I’m gonna give you
a free trial of Dashlane and 10% off their premium service if register using the link
in the description. Use the code ‘businesscasual’ to get the
discount. Anyway, thank you for watching. Make sure to like, subscribe, leave a comment,
check out both my Skillshare classes (I just released a new one) and we’re gonna be seeing
each other again in two weeks. Until then: stay smart.

100 thoughts on “Why Windows Phone Failed – And How They Could’ve Saved It

  1. I never felt so disappointed with a company. I LOVED, I mean LOVED my Lumia and I tried to hang on to it for as long as I could, hoping it would get more popular.

  2. This shit was trash i think my friend couldn’t take pictures or something it was a white windows phone lol… it was a disaster phone

  3. Mehnnn windows phone was promising…its design and phone interfave was clean…it just didnt develop apps

  4. The only reason for me to use windows is I just get used to it. MS product and the worst.
    Microsoft helicopter jock explain why!!

  5. To think, that they went so far they even based Windows 10 after the egotistical prospect that their phones, would beat everything and be the new thing. Windows 10 still sucks btw….

  6. Ex lumia 920 user here. How much I loved that phone. But the limited options of applications made me switch. And fuck Elop.

  7. Well, Steve Jobs didn't take the smartphone world by storm … that was Blackberry. They were the ones with the Blackberry Storm. 😀

  8. 9:02. If 400 mil was used for compensation towards those 8000 employees, then each would have gotten 50000 average. Pretty neat.

  9. Microsoft messed up when they produced Windows CE for three different processors. It meant confusion and scarcity of apps. They tried to correct this at the end but it was far to late.

  10. "Dashlane would've been available on Windows phones if Microsoft hadn't screwed it up" 😁😁😂🤣😂😁

  11. I once won a Nokia Lumia at a contest, sold it immediately. Hey maybe Huawei should start making Windows phones.

  12. damn, the W8 Mobile UI was pretty slick tho. i hope they would bring it back because this is the phone i wanted to buy

  13. nokia could have joined hands with linux/ubuntu instead of windows n bring high end n low end versions to mobile OS n survived to see another day.

  14. My mom and I loved Nokia, so when Nokia did Microsoft phones we bought it and we liked it. I had a 625 since 2015 to 2017 (I changed it because the battery die) and my mom a 520 and we loved it. The app for YouTube was amazing 😍 I loved that it played videos in the background.
    But sadly the other apps suck, my mom didn't mind but I hate it, so many games and apps that I couldn't play/use so when my phone started to fail I change it to Moto g5 plus. (That I change 2 weeks ago for a redmi note 7 😂)
    But I missed the tiles, I really enjoy decorate it jeje 😊 if only had more apps, I will continue to use it nowadays 🤷

  15. Windows phone itself has died but it gave us a gift,a gift that still lives in Android for the good old times.

    Use Square home 3,set your phone to dark mode,customize your home like the original windows phone and enjoy. You can make Android look,sound and work like windows mobile with the right apps,settings and customized lock screen.

    it fully supports live tiles,and even has new features that windows mobile 10 did not had.

    After turning my K20 pro into a windows mobile as much as possible (you almost cant tell the difference) and showing my friends,they all want me to make their phones like that and they never had windows phone.

  16. yeah windows phone sucks to use. how the interface and its not user friendly. what i totally mean is that the navigation and it has a limitted capability

  17. I had the Lumia 1020 and it was great. The camera was amazing! The lack of removable storage sucked though and the GF at the time nagged about Snapping each other and that stuff. I switched to the S7 Active which sucked compared to the 1020.

  18. Absolutely loved my Nokia Lumia 1520, the best Windows Phone ever.

    Even though there are now Nokia phones running Android, these often come across as overpriced compared to other Android phones, which is such a shame.

  19. windows phone would have worked with time, but corporate microsoft investors wanted INSTANT GRATIFICATION!
    Unless it was the next "FACEBOOK" its not worth investing.

  20. I really liked my Lumia1020. Solid as a rock and that camera was incredible for the time. The interface was good, it was the fact that nobody made apps for it which did it in.

  21. Still using the 930 and the 950XL, but now they just shut down the Facebook and messenger app, so it's time to move over some Android shit. Got myself a cheap used China phone (Protruly w. 360 degree camera) for $40 and it wasn't as bad as the Samsung Galaxy S3, which I had for a week and then gave to one of my kids, so there may be hope that I can get me a phone that I can actually use. But, there's no chance any Android phone ever will be as simple and intuitive to use as the Windows phones were, and still are. Once I get used to Android I'm really happy that Nokia is back in business, and that they are using stock Android with no bloat. I guess that's where I'm heading.

  22. First because many user uses android phone and manufacturers chose to develop android than windows. And also app developers and IT are also developing android apk apps than windows XAP applications

  23. Google should make android base OS on desktop and laptop so we could run apps on computer without using emulators 😁

  24. I’ve tried everything from android to windows phone and now am an iOS user but I have to admit I really miss windows phones .

  25. User Experience of Windows Phone was Awesome
    Incomparable with any OS even Android.
    But lack of apps and
    abandoning apps each version they goes up was a huge problem

  26. If they had gone with google play like how google made their own phone or even improve their App Store it could have survived.

  27. I used to have Windows Phone and loved it very much. Just that the lack of apps and very few updates killed it. Big factor also is that Google sabotage it by refusing to make a working app for the phone while Microsoft keep on improving their Android apps. Heck you need to say to have a solid Youtube app that is not developed hy Google. One more thing, they they dont listen to customers. Every time they roll an update they dont include the features that customers keep asking for years until manybjust give up on it. I might buy one again on reselling stores just for the sake of nostalgia.

  28. I had a Windows Phone(bright yellow) and that was the best camera 📸 Phone ever!!! 😭 41 Megapixels and real flash!

  29. I'm still using an Windows Phone – Nokia Lumia 820. It has great camera that can compete with new 500 Dollar Phones. It only has (I*m not 100% sure) only 32GB but I can save so many pictures and movies I can not believe.

  30. That is so sad because I absolutely love the Nokia Lumia 1020! It could have had great potential if things had gone the right way for Microsoft…😔

  31. It just wasnt a nice to use system! It was supposed to quick and easy but turned out to be difficult and hard to grasp given they had changed basic operations for no reason except "change".
    It looked kind of nice but it aaa most definitely a book who's cover didn't match . I would be fine with them starting over and giving us the best of what we have and thinking up some new stuff. If someone doesnt try then phone os will become incredibly boring

  32. It outsourced its brain to indian, that's why it failed, where else google strives, the lesson learned here is that never ever outsource your core competencies to a third worlders or disaster like boeing max can happen

  33. its sad that nokia was limiteds to windows phone OS because Nokia lumia is still the most beautifull phone ever made and i wanted one so bad but i didnt want it with microsoft phone OS

    its so sad that lumia died

  34. Limited apps and horrible OS imo, I really disliked the square apps with no background and the bloated OS with loads of windows specific apps. Felt like living in a box.

  35. I truly hate Microsoft. Have for decades. I did own the HTC with the landscape slideout keyboard and it was an excellent phone and Windows OS. To this day, I am not an app hog, just what I need, the rest needlessly spies on me,

  36. They were too late. By the time they have a decent product, the developers and consumers are either in iOS or Android camp.

  37. Crazy to think the first android was a mind-blowing design at first. Look how far it's come in 10 years. Where in the hell will the next 10 years bring us….? 🤔

  38. Ha that is Karma for microsoft with their worthless windows phone and that's what they get for destroying Nokia with their dirty trojan horse tactics and stealing Nokia's old phone division for benefits. Nokia is now running android one by the help of HMD Globle. And they are doing fantastically well. Nokia with android is better of without a useless windows phone. Nokia FTW

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