Microsoft Investors Want Surface Phone and Mobile Strategy Confirmed (MSFT)

Microsoft stock

Microsoft Corporation will continue to look at different forms and functions for mobile devices, according to the company’s CEO Satya Nadella. The CEO, who was responding questions of shareholders at the company’s annual meeting on Wednesday, shed some light on the company’s vision for its consumer devices.

Many shareholders and Windows started to believe that Microsoft Corporation is going to abandon mobile. Rumors are swirling about the Surface Phone but the firm has declined to confirm or deny any of the rumors regarding the handset.

Nadella told shareholders that his company isn’t stepping away or back from its focus on mobile devices, according to a report from Geek Wire.

Microsoft’s Strategy For Mobile Device

At the beginning of Microsoft’s annual meeting, the first announcement was: “Please silence all Windows Phones and other devices.”

Following the Nokia acquisition, Microsoft Corporation has cut its focus on smartphone hardware and built a smaller number of flagship devices. Also, the company is releasing more of its own apps for iOS and Android mobile platforms. So, shareholders were a little confused about the company’s mobile strategy.

Dana Vance, who a Microsoft shareholder and fan of Windows Phone, asked Nadella to tell something about the company’s plans consumer devices. He was surprised to see that the company made the Microsoft Pix app available for iPhone and Android but not Windows Phone. Moreover, he wanted to know if the company has put the Band on the back burner.

In response, Nadella said: “When we control things silicon-up, that’s how we will integrate those experiences. The firm will “build devices that are unique and differentiated with our software capability on top of it — whether it’s Surface or Surface Studio or HoloLens or the phone — and also make our software applications available on Android and iOS and other platforms. That’s what I think is needed in order for Microsoft to help you as a user get the most out of our innovation,”

Another shareholder, who uses a Windows Phone “18 hours a day,” said he heard report that Microsoft “stepping away from mobile.” He asked the CEO: “Can you calm me down … and tell me what your vision is for mobile?”

Nadella responded: “We’re not stepping away or back from our focus on our mobile devices. What we are going to do is focus that effort on places where we have differentiation. If you take Windows Phone, where we are differentiated on Windows Phone is on manageability. It’s security, it’s Continuum capability — that is, the ability to have a phone that can act like a PC. So we’re going to double-down on those points of differentiation.”

Microsoft Corporation (MSFT) Satya Nadella

Nadella added: “We will keep looking at different forms and different functions that we can bring to mobile devices, while also supporting our software across a variety of devices. So that’s the approach you will see us take. We are not stepping away from supporting our Windows Phone users. But at the same time we are recognizing that there are other platforms in mobile that have higher share, and we want to make sure that our software is available to them.”

Microsoft Surface Phone

Recently, the Commercial Times of Taiwan reported that ODM Pegatron, which produces the Surface Studio and the iPhone, is running production trials on the Surface Phone.

Rumors suggested that Microsoft Corporation will introduce three models of the Phone in early next year. The new Phone is said to replace the iPhone as a smartphone superstar.

The Surface smartphone line up is rumored to include a consumer model, a business model, and an enthusiast edition. The base model will come with 4GB of RAM and 64GB of storage, while a mid-range getting 6GB RAM and 128GB storage.

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Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.


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