Microsoft Misses Windows Mobile Sales Target By 2 Million

Dianne See Morrison
Friday, August 1, 2008; 2:00 PM

Microsoft ( NSDQ: MSFT) sold 18 million Windows Mobile licenses in 2008, two million short of its own goal of 20 million, the company said Thursday. The company blamed delayed launches from handset makers for the missed target.

Though Microsoft wouldn't single out any cellphone manufacturers by name, analysts speculated that delays of Sony ( NYSE: SNE) Ericsson's Xperia could have impacted the sales target. SE announced earlier this year it would ship its first Windows Mobile handset?the Xperia--and though they put the launch down for the second quarter, IDG News (via PC world) reports that Microsoft expected to ship the software in the first. The iPhone was also a factor, with some speculating that the July launch of the new 3G device may have caused some to hesitate buying a Windows Mobile phone.

Of course, the other reason could be that Windows Mobile, which for years was targeted to business users, just didn't have enough consumer appeal. Microsoft has stated that it wants to take on the consumer market, saying in June for example, that it would improve music capability in future versions of the OS. It faces an uphill battle, however, as practically every one from traditional consumer company Apple ( NSDQ: AAPL) to its enterprise rival Blackberry is targeting this segment now.


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