Microsoft Slashes Windows Mobile Phone Prices

[Jerry Raia]

<div class='os_post_top_link'><a href='http://www.halflifesource.com/news/2007/10/23/article9869.htm' target='_blank'>http://www.halflifesource.com/news/2007/10/23/article9869.htm</a><br /><br /></div><p><em>&quot;Microsoft is cutting the price of its Windows Mobile phone line next month at prices below $100 The software giant has faced increasing competition from Blackberry and the Apple iPhone. AT&amp;T is already offering Windows Mobile phone model 3125 for $49.99. Another model will go on sale for less than $100 but the company declined to name the model and what company will be selling the device.&quot;</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/500/spt/auto/1193938078.usr6.jpg" border="1" alt="" /></p><p>I'm not sure how dramatic cutting the price of the old 3125 (WM5 device) really is. I have&nbsp;a feeling the &quot;other model&quot; referred to is no earth shaker either. I run into more people that have no idea what Windows Mobile is than I do people who think they cost too much. Perhaps it is a marketing issue rather than a price issue? Just a thought.</p>

[SassKwatch]

<p>I have&nbsp;a feeling the &quot;other model&quot; referred to is no earth shaker either. I run into more people that have no idea what Windows Mobile is than I do people who think they cost too much. Perhaps it is a marketing issue rather than a price issue? Just a thought.</p>

I have absolutely no doubt it's a marketing problem. Have 'you' ever seen any marketing for WM in any way/sahpe/form outside the geek trade magazines/sites? IMNSHO, MS has done a horsefeathers job of marketing WM since it's inception. Or at least since the year *after* it was initially introduced as 'PocketPC'. There was some money behind it that first year, but next to nothing ever since to my eye.

Out of approx 115 people in my dept at work, I suspect I'd be hardpressed to find more than 5 who have ever heard of WM.....let alone have a clue what it does. By contrast, I'll bet a hundred of them at least know what an iPhone is.

[heliod]

Perhaps it is a marketing issue rather than a price issue? Just a thought.


I fully agree with you Jerry. And one of the prrofs of it is in the original article itself to which you link. I guess the writer there still hasn't realized that Microsoft is not the one that sets the price of their mobile devices since they don't produce the devices, only the OS. The prices are set by the ODMs/OEMs and the Mobile Operators.

The fact that some operators have decided to slash down prices for some old models has nothing to do with a Microsoft decision. It is purely their own marketing strategy.

[heavyduty]

The fact that some operators have decided to slash down prices for some old models has nothing to do with a Microsoft decision. It is purely their own marketing strategy.


That may be the case, or not. MS could also be subsidizing WM phones sold by the operators, and in that way "slash the prices".

[kdarling]

As others have already pointed out, Microsoft doesn't make phones, therefore they don't set the prices.

They don't even get a huge amount from each phone. Their OS rates are $5-$15 per unit, and in the quantity most cell phones sell in, it's probably closer to the lower number. That's why so many makers are moving to WM, it's cheap in comparison to doing your own code.

[Sven Johannsen]

That may be the case, or not. MS could also be subsidizing WM phones sold by the operators, and in that way "slash the prices".

I would doubt that. MS doesn't get a cut of the contract, they just sell (license) the OS to the OEMs. They'd never recoup any subsidy like the carriers do with the monthly plans/contracts. Only thing they could achieve is getting some more market penetration, but it would be better to do that with current models rather than dated inventory. Looks more like carriers trying to move stock.

The linked article isn't well researched. The last paragraph is clearly a misunderstanding of what Mobile Device Manager is for.

[Mike Temporale]

Microsoft isn't cutting any prices. It's just the carrier looking to move old stock out the door. If Microsoft cut the price of WinMo I don't think anyone would notice. Since that cost isn't directly applied to the consumer. The manufacturer pays a flat fee for x number of licenses. If that price dropped, I don't expect that they would cut the price of their phone to reflect that change. Especially old phones like this. :rolleyes:

[jadesse]

Since when does MS make smartphones? That is a new one on me. If MS & AT&T want a good gimmick then they should consider restructuring the pricing of their data plans. I can handle paying $400-500 for a device but when it cost me $100 per month just to use it.... AT&T is making money hand over fist.