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Microsoft Corporation (MSFT) Wants to Steal BlackBerry Ltd (BBRY) Market Share

blackberry ltd (BBRY) OS

BlackBerry Ltd , might have one or two lessons to teach Microsoft Corporation , as the later seems bent on slugging it out in the smartphone market.

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It is no longer news that the global smartphone market is being led by Apple’s iPhones and smartphones running on Google’s Android OS. BlackBerry 10 OS phones and Microsoft’s Windows line of phone are left to slug out the distant third and fourth positions. Gartner reports that Android phones account for 78.9% of global smartphone device sales while iPhones account for 17.9% of sales at the end of Q1 2015.

In addition, Apple currently takes 92% of the operating profit in the global smartphone market and Samsung takes 15% with its Android phones. Hence, the other players in the market such as BlackBerry and Microsoft are either running at breakeven points or running at a loss.

BlackBerry is Already Exiting Hardware

Against the backdrop of its inability to compete in the hardware market, it appears that BlackBerry , is now embracing its destiny as a software firm.

News broke yesterday that the firm has hired a veteran from Cisco systems as the new head of global sales. It is expected that Carl Wiese will use his 12-year experience in handling sales at Cisco to propel the BlackBerry , software push. There are signs that the firm will migrate to the Android camp as rumors about its plan to make Android phone continue to fly.

Microsoft is Still Slugging it Out

A report from DigiTimes holds that Microsoft planning a new roadmap to challenge for a space in the smartphone market. The Windows 10 OS is due to be launched by the end of this month and it appears that Microsoft wants its Microsoft Mobile segment to support the smartphone platform.

DigiTimes is a pretty dubious source for these kinds of rumors, so you can take the report with a pinch of salt. DigiTimes reported that Microsoft will focus on building high-end and business-use smartphones while its partners will build cheap, entry-level models that will be launched in emerging markets.

Microsoft Doesn’t Seem to get It           

Microsoft’s last attempt to get into the Smartphone market is not new. This approach was exactly what it did with the Lumia line of phones for the high-end market while the Asha line was being launched in emerging markets. The problem is that Microsoft came late to the mobile party and users can’t seem to find a good enough reason to ditch iOS or Android for Windows.

More so, the emerging markets that Microsoft  wants to target with entry-level phones will find Android phones from Chinese OEMs. OEMs such as Techno and Huawei can provide Android phones with giant screens, touch display, front and rear cameras among other things for about the same price as Microsoft’s drab entry-level phones.

BlackBerry has been focused on high-grade business smart phones for years. It’s gotten the firm nowhere. People prefer to use an iPhone, even if they’re at the office. Microsoft may be able to steal BlackBerry market share with its new range of devices, but that’s about as far as it can get without offering something truly different.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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