Window Phone Survives At The Low-End With Budget Handsets

Nokia Lumia 830 (image: Ewan Spence)

As Android continues todominate smartphone market share around the world(and iOS takes the majority of the profit), is there a place for themythical third operating system that Windows Phone always hoped it would be?

Microsoft has made a big play by purchasing Nokias mobile operations so it believes there is a case and it has an ally in Alcatel. Vice President of the Chinese manufacturer Dan Dery spoke toThe Guardianand highlighted one of Windows Phones key strengths.Carriers from across the world have consistently told us that entry-level Windows Phones work, but not at the high-end.

Given the strength ofhandsets such as the Lumia 520, the signs are already there for Microsoft to pick up.During this quarter lastyear the Lumia 520 was Microsofts biggest selling Windows product. Not the biggest selling Windows Phone product, the biggest selling Windows product across the full portfolio.Paul Thurrot hascontinually sung the praises of this low-end handset:

The Lumia 520 is perhaps the most versatile smart phone Ive ever seen. Thanks to its low-ball, no-contract pricing, you can pick one up for any reason. Destroyed your high-priced smart phones precious screen? Get a Lumia 520 to ride out the rest of your contract until you qualify for an upgrade (and then get a Lumia 1020, obviously). Get a second phone, which you can use on the inexpensive GoPhone plans or not. Use it as a replacement for the Zune HD or iPod and access any or all of the amazing media servicessee belowthat are available in fine form onWindows Phone 8. Give one to a kid. Heck, give one to each of your kids.

The Nokia Lumia 520 (image: Microsoft PR)

ApplesiPhone juggernaut will continue to takethe profits from the high-end market, and manufacturers such as Sony and Samsung are struggling to find a combination of hardware and software that is profitable in the mid-range. All the action and the engines of growth are coming from the low-end.

In general that means Android, but it also means manufacturers such as Huawei and Xiaomi adapting Android for their own handsets and ecosystems, alongside countless smaller manufacturers building Android handsetswith the Android Open Source Project and their own flavours of the OS. That takes money away from Google and thegrowing ecosystem. The counter from Google is Android One, whichit hopes will weaken the Android Open Source Projectand bring new manufacturers and their hardware under Googles velvet glove of control.

This years move by Microsoft tolicence Windows Phone for freeto devices with screen sizes under nine inches is an important one. It gives manufacturers (such as Alcatel) a choice of amature ecosystem that is not Googles Android. If Windows Phone was not available, the only other choice would be to hand-roll an OS from the Android Open Source Project, which is an expensivedrain on resources for any manufacturer operating with thethin margins on offer at the low-end.

This is where Windows Phone can step in.Manufacturers can be confident of a fully-tested system with a strong portfolio of cloud services, first-party apps, and an extensive app store that covers almost all of therequired bases fora user. The OS continues to rankly highly in customer satisfaction surveys, and there is a clear demand from networks forentry-levelhandsets.

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Window Phone Survives At The Low-End With Budget Handsets