Microsoft’s business model over the years has remained predominantly software oriented. The company was good at making software and made most of its money by licensing its software to its partners, who in turn sold them to the end consumers. However, there have been many instances in the past when the company did venture in to hardware – albeit with mixed results. For example, its venture with the gaming console Xbox has been hugely successful while some other ventures like the Zune music player and more recently, the Kin lineup of phones were disastrous. More recently, the company also launched its Windows based tablets – the surface – much to the annoyance of its own partners. And if we are to believe fresh reports, the company is bracing itself to take a plunge in to the highly competitive smartphones business – this time, by manufacturing its own handsets.
A report that appeared on the very credible Wall Street Journal has pointed towards the possibility of Microsoft coming up with its own range of smartphones in the near future. The report claims that Microsoft is already in talks with a bunch of component suppliers from Asia for its smartphones project. With Microsoft making it clear that they are very much in to the hardware business with the launch of its own tablets, the progression to its own smartphones is a natural one.
However, unlike Apple which doesn’t license its software to other hardware makers, Microsoft is at the risk of annoying its long term partners here by barging on to what has been traditionally their turf. With Microsoft’s Windows Phone platform yet to create a significant blip on the radar – a good two years after its announcement, this move from Microsoft is an extremely risky one, if it indeed turns out to be true.
Microsoft’s previous attempts at making its own phone hardware was a forgetful venture. Its Kin lineup of phones lasted a mere 48 days in the market after which the company permanently pulled the plug on them.
Let us hope Microsoft’s new gamble pays well for the company.