Microsoft announced on May 18 that it will selling its feature phone operations to Foxconn for $350 million and a Finnish startup. In 2014, Microsoft purchased Nokia's mobile devices business for $7.2 billion.
In a press release, Microsoft said that it will continue to develop Windows 10 Mobile and support Lumia phones like the Lumia 650, Lumia 950 and Lumia 950 XL. It will also continue to support phones from third-party partners like Alcatel, Acer, VAIO, HP and Trinity. The company, however, did not indicate whether it will work on another Lumia phone again.
The Verge stated that rumors of Microsoft completely dropping Lumia for good started weeks before when Terry Myerson, Microsoft Windows and devices head, stated in a leaked internal memo that the company is currently developing next generation products, without mentioning Lumia. A spokesperson also said that they have nothing specific to share about their future product roadmap, which further hints that the company does not see Lumia in its future. Users believe that the company will instead shift its sights on a Surface phone to release in 2017.
CNet said that only 1.1 percent of users around the world own phones that operate on Windows 10. Microsoft also lost billions of dollars and had to cut thousands of jobs after acquiring Nokia. Considering the poor sales of the Lumia line since 2014, Microsoft may be better off quitting the phone hardware business completely, according to Gartner. Some experts saw the Nokia acquisition as a complete failure.
Microsoft has to bounce back through its other developing technologies, such as the HoloLens and Surface line. The company may do better by focusing on augmented and virtual reality devices to drive the market instead of merely following in the footsteps of established companies in the phone industry.
According to ZDNet, Microsoft may be eyeing on a new Surface Phone instead, which will launch in April 2017. It is rumored to be the most secure phone in the world and best phone in terms of productivity. The device appears to target businesses, instead of consumers.
If Microsoft puts Continuum and remote desktop services the focus of future Surface mobile phones, the upcoming products may appeal to business users as well asfeature a wide array of apps. These are two strengths that the company can capitalize on to hopefully get a bigger share of the market in the years to come.
More updates and details on Microsoft, Lumia and Surface phone are expected soon.
