What's the deal with Windows Mobile?

Watching Microsoft twist in the wind as the iPhone steals its thunder in the smart phone market is interesting and, I think, instructive. As was the case with the digital media market, where Apple swept in with its iPod devices and iTunes software, Microsoft has an established presence in this market, dating in this case back to the first version of Windows CE from the mid-1990s. And as with that other market, Microsoft is being left behind in the smart phone market, first from a perception standpoint. I can only imagine that an actual sales deficit will follow. Then what?

Before that happens, we're left with the perception bit. And Microsoft is failing badly here. Despite the fact that Windows Mobile actually outsells RIM's Blackberry, and despite the fact that Microsoft obviously invented the notion of Exchange/device connectivity, every single article I read about Apple's moves into the enterprise market compares the iPhone not to Windows Mobile but to Blackberry. It's amazing.

Microsoft's response to this threat has been abysmal. On the other hand, at least the company is responding. In the year since Apple first announced the iPhone, there's been a sudden flurry of activity in the Windows Mobile world as Microsoft scrambles to embrace iPhone-like UIs and technologies in its own products. But Windows Mobile is hobbled by a number of factors, not the least of which is the gap between the software itself and the broken ecosystem (especially in the US) that is responsible for incorporating that software into devices and selling them to end users. The smart phone market isn't like the PC market, and Microsoft can't easily offer updates to existing Windows Mobile customers. Sometimes it can't do so at all.

Since we're still a ways away from the supposed major release that will be Windows Mobile 7.0 (which one imagines has been completely redefined in this post-iPhone world), Microsoft is forced to treat us to more incremental updates in the meantime. Windows Mobile 6.1 was announced today, for example and Microsoft's partners will actually ship WM6.1 hardware as soon as mid-2008 (wow). Meanwhile, the Windows Mobile blog has been forced to tantalize Windows Mobile fans (and I believe there are some) with tidbits about future software promises like Zune + Windows Mobile and a friendly "Neo" UI that is apparently available on exactly one Windows Mobile device from exactly one US wireless carrier. Can you feel the momentum, people?

Lost amid all this, I think, is another indication of Microsoft's inability to compete effectively in this market. They're creating deceptive advertisements that make Windows Mobile look better than it really is. Here are two example "screenshots" of Windows Mobile 6, taken from the Microsoft Web site. See if you can spot the problem:

If you guessed, Windows Mobile doesn't actually look anything like that, then you guessed correctly. Looking at these images, you would be forgiven for believing that Windows Mobile is visually identical to Windows Vista, with amazing translucency effects and glass window borders. The truth is, Windows Mobile 6 looks a lot like Windows Mobile 5, but with a static skin applied to it that is vaguely Vista-esque. There's no translucency in the UI and there's certainly no glass window effects. Dialogs and balloon windows in Windows Mobile 6 are as flat and opaque as ever, sorry.

And here's what Excel Mobile really looks like (image courtesy of Clinton Fitch):

Compare that to the second shot above. No offense, but they aren't even close. The top one is beautiful, but fake. The bottom one is ugly, but real.

Don't get me wrong, I haven't completely given up on Windows Mobile. But as is the case with the Zune, the Xbox 360, and Microsoft's other none-core efforts, I have to wonder what the heck is going on. I know there are smart people over there, good people. I wish them luck, I really do.

PS: Windows Mobile has a Facebook page. Maybe they are cool.  :)

Discuss this Article 31

daveinla
on Apr 2, 2008
Now it's what I would call a LIE, as you like to employ that word. Sad but true, MS is again trying to play catch-up. The problem is that in an uphill battle like that, catch-up is not enough, and you have to innovate to gain share against the other (iPod, PS3, and now iPhone). At ht ebest I think Win mobile will be an worthy contender like Xbox, and most likely will follow the path of Zune...
pthurrott
on Apr 2, 2008
People and, I guess, companies, can lie. Microsoft doesn't actually say, hey, look, this is Windows Mobile. But using imagery like that in an ad like that is, of course, deceptive. And it's not right regardless of how you define things. This reminds me of when Activision got in trouble for imagery in a "Call of Duty" advertisement that wasn't in the actual game. http://www.gamesindustry.biz/articles/activision-ordered-not-to-show-mis...
anonymous
on Apr 2, 2008
Sure, die hard Windows pundit Paul Thurrott has already stepped out of the iPhone closet, skewering Windows Mobile both in his blog and in a (cold medicine induced?) tirade during the Windows Weekly podcast on the TWiT network. Now,...
Too Many Triangles
on Apr 2, 2008
Surely Windows Mobile could look that pretty? Aren't mobiles pretty powerful these days? Maybe Microsoft should move away from "Windows" for mobile devices. It worked for Xbox.
BrightrevCarl
on Apr 2, 2008
I just have to say it was pretty funny when I looked at the screenshots and said "It doesn't look anything like that," and then scrolled down and you said "Windows Mobile doesn't actually look anything like that." On the Call of Duty ad - I just saw an ad for a PS3 baseball game the other day and it included footage that obviously wasn't in the game. Of course the COD issue was specific to the UK, so I assume video game makers can put whatever they want in their US commercials.
Too Many Triangles
on Apr 2, 2008
Damn that Airline Travel!
cesjr
on Apr 2, 2008
"creating deceptive advertisements" - I guess hoping that Paul will use the L word (liar) with respect to a company other than Apple is too much to hope for. Oh well, we can't have everything. However, there is one thing that Paul is lying, wait, I mean being deceptive about. The sales figures. Look, Paul knows as well as I that smartphone sales in the U.S. are (1) Blackberry, (2) iphone, (3) everyone else including windows mobile. These smartphone market share figures come from Canalys - Paul already knows this but he just ignores it. He likes to pretend apple and the press are pulling these numbers out of nowhere. He knows that's not the case. Go watch the SDK Apple event and look on the market share slide. The numbers are from canalys. And they are U.S. only. Look, apple is not selling around the world yet. So looking at worldwide market share is not necessarily probative. This is the same reason that MS (and Paul) have given U.S. -only market share figures for the Zune. Look, we can debate world vs. U.S. share, but Paul should stop the deception - this is very simple and not a mystery. The mkt share figures are U.S. only and they come from a third party - CANALYS CANALYS - the figures are not made up. Got it yet, Paul?
brandon.pope
on Apr 2, 2008
I see what you are thinking in saying Windows Mobile should move away from Windows, however that defeats the purpose altogether. The entire reason WM was conceptualized was to bring phones further towards the Windows experience. If WM was done right, then it would outsell the iPhone overwhelmingly because for 90% of the population, having a functional version of Windows with them spells a huge lift in productivity. So, Windows Mobile doesn't need to wander further from WIndow, it just needs to do what it should have done all along, be a great version of Windows... that happens to be on your phone.
lotsamystuff
on Apr 2, 2008
"Watching Microsoft twist in the wind as the iPhone steals its thunder in the smart phone market is interesting and, I think, instructive." Not to mention "kind of fun". Especially when every Microsoftie from Ballmer on down predicted the iPhone would be a massive failure. "Maybe Microsoft should move away from "Windows" for mobile devices. It worked for Xbox." The XBox? You mean the money-losing failure-riddled record-breaking-recall gaming console that's currently being outsold by the PS2? Yeah, that's a great model to follow.
DRWAM
on Apr 2, 2008
Using a low rez pic on a high rez monitor or TV will look like crap. That is why a lot of companies do this, but usually show the words 'simulation' or other disclaimer. I don't consider that a lie. Stating a product has or does something that it does not, is a lie, unless you state that 'this is an example and may not be actual blah, blah, blah.' Not lies, but examples. Not really deceptive, IMO. Go ahead and show a crappy low rez pic and see if you have your advertising job tomorrow.
Dipsh t Admin
on Apr 2, 2008
DRWAM, I'm glad you're here, since you are a true non-geek, you can cut the mustard pretty fast, and you are right of course. You also live in NJ, so dealing with our dysfunctional state government gives you a clearer view of things ;)
drylight
on Apr 2, 2008
"Apple first announced the iPhone, there's been a sudden flurry of activity in the Windows Mobile world as Microsoft scrambles to embrace iPhone-like UIs and technologies in its own products." And this, in a nutshell, is why Microsoft are so pathetic.
Lindy
on Apr 2, 2008
Windows Mobile has sucked since my first IPAQ...that big silver device with the PCMCIA card slot jacket. It has been successful for one simple reason....Exchange dominates in the corporate world, and in small business when SBS 2003 is deployed. WM works very well with Exchange and if you have OWA up and running, most companies do, then WM is a cheap option since WM uses your OWA server. Unlike RIM which is the cost of separate server/VM, BES server software license and CAL for the Blackberries. With out Exchange WM would be a total failure. I have supported Exchange from 4.0 - 2007, and I have seen/used and owned many WM 2003-6.0 phones, because I support it. 99% of them are under powered or WM is just that bloated. WM crashes like Windows 98, because even with the latest version, once you open an app it stays open unless you go out of your way to close it or power cycle the OS. With 2003 and early version 5 reboots and lockups were very frequent and many different models. Late version 5 and 6 are better, but I have had a recent BlackJack that will lockup anytime I try to answer a call while I already have one going on. Its pure junk, but with MILLIONS of Exchange users out there, it thrives because it works well with Exchange 2003 SP2 and higher, and is a much cheaper solution than Blackberry, and with out the Blackberry single point of failure up North. I hope the iPhone, once it gets full Exchange support eats it alive.
johnpapola
on Apr 2, 2008
I think this is another example of Paul overall being pretty fair. He rips into Microsoft good here and the Windows fanboys like Waethorn should take note. The iPhone is an impossible to ignore or deny example of how Apple does world class software and hardware innovation. As a longtime former Palm user, it is simply amazing how stable and amazingly powerful this phone is. And I waited in line on day one, so this is absolute first generation gear. How many companies have had this many successful products of this nature? Apple's now had the Apple II, the Mac, the iPod and the iPhone. That's a damn good record of major platform innovation. Microsoft has Windows and Office, and everything else is a disastrous failure on either technical, financial or both fronts.
heran
on Apr 2, 2008
"The XBox? You mean the money-losing failure-riddled record-breaking-recall gaming console that's currently being outsold by the PS2? Yeah, that's a great model to follow." It's unfair to compare it with PS2. PS2 had been there for many years before xbox. I guess PS2 outsells PS3, so you'd call PS3 a failure? PS2 is "money-losing" for SONY in the first few years too so it's not a big deal. Plus it seems xbox 360 did a better job than PS3 in the market.
Dipsh t Admin
on Apr 3, 2008
"Microsoft has Windows and Office, and everything else is a disastrous failure on either technical, financial or both fronts." John, you have to calm down your rhetoric a little bit. I see a Kool-Aid froth around your mouth. So, let's see what has been a disastrous failure for MS, shall we? Exchange, SQL, Visual Studio, Flight Simulator, mice, keyboards, Encarta, Money, Halo, Xbox Live, Media Center (which you yourself said is superior), Mediaroom, SYNC (word is still out on this, but Ford is a pretty big customer). Yep, you're right. Those are all some pretty disastrous products.
pthurrott
on Apr 3, 2008
cesjr, I don't mind disagreement. Not a huge fan of mindless attacks. For the record: Windows Mobile outsells RIM. Here's the latest market share data: http://en.wikipedia.org/wiki/Smartphone Incidentally, those figures (Q4 2007) are from Canalys. I know they're a favorite of yours. You seem to prefer US-only figures. These are worldwide, presumably. With that bit of "deception" out of the way, I'm more curious about the libelous nature of your attack. Why, in a post criticizing Windows Mobile, would I somehow try to prop up Microsoft's mobile OS from a market share perspective? That doesn't even make sense. So feel free to disagree. Don't be a jerk about it, please. And don't accuse me of doing something I'm not. I couldn't care less who has more market share on a personal level. I certainly have no reason to make Microsoft's share look better than it is.
pthurrott
on Apr 3, 2008
Regarding Microsoft platforms, I'd point out that something like 97 percent of the revenues the company makes are tied almost directly to Windows, Office, and Windows Server, in that order. Their online services and entertainment products have consistently lost money, the Xbox to the tune of several billion dollars, and I don't see any way for that ever to be recovered. Entering new markets is expensive. More problematic for Microsoft, the "Windows Way" hasn't worked in markets like digital media at all: Consumers are staying away in droves. Products like Windows Media Center may be excellent, but no one really uses them in appreciable numbers. (Heck, no one uses TiVo either, but we use that word as a verb now.) I think it's fair to state that Microsoft's 2nd and 3rd tier products (Windows Mobile, Xbox, Zune, Mac Business Unit, hardware, etc.) wouldn't even be around anymore if the company didn't have the profits from its Big Three products to fall back on. None of these have been particularly successful from a revenue perspective.
lotsamystuff
on Apr 3, 2008
"It's unfair to compare it with PS2. PS2 had been there for many years before xbox. I guess PS2 outsells PS3, so you'd call PS3 a failure?" Careful there, cowboy. I didn't call the XBox a failure. I said it was riddled with failures, which is true. Likewise, I wouldn't call the PS3 a failure; I personally think most of the success of the Wii and the PS2 has to do with their low price point. It's the same reason cheap PCs sell so well, even if they are technically inferior to their more expensive counterparts. And it's interesting that you point out that "PS2 had been there for many years before xbox". That speaks volumes to the quality and longevity of the PS2 as a development platform with legs. One would think that by now, the world would have passed it by. Obviously, that's not the case. Aside from one Halo-driven quarter, which is proving to be an anomaly, the XBox has been a consistent money-loser for Microsoft. As Paul correctly points out, If it were made by any other company without such deep pockets, it would have been jettisoned a long time ago.
DRWAM
on Apr 3, 2008
Although XBOX loses money, doesn't the game revenue generate some? iTunes brings almost no profit, but it helps drive sales for iPod [I think]. But some loss leaders are just too substantial for anything to compensate. Any way, to pose the question, does anyone know the revenue generated from the XBOX business, such as game sales or subscriptions?
johnpapola
on Apr 3, 2008
Dipsht, "I think it's fair to state that Microsoft's 2nd and 3rd tier products (Windows Mobile, Xbox, Zune, Mac Business Unit, hardware, etc.) wouldn't even be around anymore if the company didn't have the profits from its Big Three products to fall back on. None of these have been particularly successful from a revenue perspective." - Paul being dead-on correct. See, paul's comment regarding the source of Microsoft's revenue in answer to your question. I agree with you that saying "everything else" is a bit hyperbolic, but when you look at Pauls' comment, it's not far from the truth. In fairness to my criticism of Paul, though, I shouldn't be that hyperbolic. I dont' like when calls Apple a "liar" and I shouldn't do the same. Still, talking about Microsoft's mice is like talking about Apple's great firewire cables. It's just blip on the radar, though I agree that their mice are great. My point, though, is the same as Paul's. Outside of Windows (I'm including server there, since it's a natural extention), And office (again, including exchange here)... Microsoft has shown no ability to succeed in new markets on the scale that Apple has done with the iPod and iPhone. I use and enjoy the 360, but the Xbox division is a fiscal catastrophe with no sign of long-term profit in sight... and it's horribly loud and terribly unreliable. Live is an achievement in online gaming. Now, when you consider that both Windows and Office have monopoly power and have not achieved dominance on their own merit alone (as the iPod and iPhone have), it makes things even more unfortunate for Microsoft as a successful "innovator". I give them credit for trying, but until they stop chasing their tale and the tales of their competitors and focus, they'll just be stuck milking their monopoly money with foolish ventures for the next decade as much as they have this past one.
heran
on Apr 3, 2008
"Careful there, cowboy. I didn't call the XBox a failure. I said it was riddled with failures, which is true." Cowboy, that's how you start a debate? "I didn't call the XBox a failure. I said it was riddled with failures." Yeah, whatever. "I personally think most of the success of the Wii and the PS2 has to do with their low price point." Back to the years SONY had to compete with other consoles like Dreamcast, so the price is low and I read report that PS2 itself didn't make any profits (even minus profits) for SONY for the first few years after the release, which means PS2 is also a "money-loser" in history. But this did not stop SONY; without "losing money" it may be hard for SONY to defeat Dreamcast. This is something called market strategy (see DRWAM's comments for reference). "money-loser" doesn't actually mean anything, as long as the company (such as SONY or MS) has enough money and is happy to spend.
johnpapola
on Apr 3, 2008
Ah xbox. Microsoft took a big risk by depreciating the first xbox so quickly in order to push the 360. That risk is looking like it won't pay off. Instead of keeping the old xbox alive and selling it at a profit as Sony is doing with the PS2, Microsoft put all of its eggs in the 360. That's fine, except that they rushed the design and delivered a machine that's got fundamental hardware problems. Again, I like it, but it's so loud I can't comfortably watch a DVD on it. And every single person I know has had it fail... but me. I don't play enough to have it fail yet, I guess. Why can microsoft make such terrible mistakes with their strategy? Monopoly money from Windows and Office. At this point, I think it's fair to say that Microsoft couldn't stay in business based on this track record, if it had to start from scratch without these two monopolies to draw from. The next question becomes, why be in the gaming business? In theory, it's a monopoly extension strategy. Get people on the 360 and use it's hooks into windows to reinforce the value and dominance of Windows. Unfortunately, it's noise makes it a terrible media center device and it's lack of a next-gen HD disc format prevents it from being a helpful convergence device as well. What you're left with is a side-project that is kept going on a hope that at some point it can turn some small sustainable profit. After losing many billions on it up to this point, I'd say the Xbox division was a bad investment. And again, I own and enjoy the 360.
Lindy
on Apr 3, 2008
I thought the 360 hardware is finally making money per box sold? Also I thought the Xbox divsion is finally bringing in more money than it spends? Of course it has a mountain of debt to make up for. As far as consoles goes, it has the higher game sales than the Wii and PS3 put together. If Sony could put something together that is 70% as good as live and keep it free the Xbox would be done. Live and its multiplayer features are what makes the 360 a hit.
johnpapola
on Apr 3, 2008
Lindy, I think the xbox division only made a profit in the quarter during which Halo 3 was released. Can anyone confirm this?
pthurrott
on Apr 3, 2008
I believe John is correct on the profitability of the Microsoft division that makes the Xbox 360. More to the point, if they've been profitable a few other quarters, big deal: They're never going to come close to recapturing the several million dollars they've ejected into the ether in order to just enter this market. Microsoft will never make money on the Xbox, certainly not during the lifetime of the current generation of hardware. It's impossible.
johnpapola
on Apr 3, 2008
Paul, why do you think Microsoft is still in this market? What do you think is their strategy? Is it just hedging bets? That's a multi-billion dollar (lost) hedge.
johnpapola
on Apr 3, 2008
I tell you one thing, if they came out with a revised 360 that was whisper-quiet and included bluray drive, I'd be all over it.
DRWAM
on Apr 3, 2008
I don't know about recouping all the loss, but I can see it getting Bluray and improved reliability/hardware. Perhaps it can finally shine. Of course many of you can clearly read through my posts, that I am a big optimist. The market war for consoles is far from over, and profit making of the Xbox could be right around the corner. Anything is possible if you have faith. Isn't that what Obama says?
anonymous
on Apr 10, 2008
Adobe lanza Photoshop Express : Un photoshop online y gratuito. Yahoo desvela una tecnología para realizar
dstrack
on Apr 21, 2008
What about the fact that MSFT just bought Danger (Sidekick)? I'm assuming it was a cheap option to get into the cellphone hardware biz? Kinda surprising tho... Would've rather seen them buy Palm (too expensive?). On a side note, I recently bought the Verizon XV6800 running WinMo6.0Pro. Loving the phone but due to Verizon's limitations they do not allow you to access Hotmail Live on the Pocket Outlook application... instead you need to use the web browser to login to the email service. SUPER LAME!!! It's just funny that my Gmail IMAP account works better on my WinMo phone than MSFT's Hotmail!!!

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