Microsoft misses Windows Mobile goal by 2 million licenses

In an interview with Andy Lees, senior vice president of the Redmond company's Mobile Communications Business, Todd Bishop managed to grab some interesting facts about recent Windows Mobile developments. HangZhou Night Net

First, Microsoft sold more than 18 million Windows Mobile software licenses in the last fiscal year, which ended June 30, 2008. This was about 2 million short of Microsoft's widely publicized 20 million target. Lees explained that a few OEMs shipped their devices later than expected, and this was the reason for the shipment target being missed. He declined, however, to say which ones: "That would be unfair to the OEMs."

Secondly, Microsoft increased Windows Mobile's share of the worldwide mobile phone operating system market. According to IDC data, Windows Mobile unit sales have grown faster than the overall market, expanding from slightly more than 11 percent to just under 13 percent of the worldwide smartphone market. Two months ago, Microsoft announced it expected Windows Mobile sales to grow by at least 50 percent in the upcoming fiscal years 2008 and 2009.

Thirdly, Lees claimed the shortfall in Windows Mobile unit sales didn't have a material impact on revenue in the Entertainment & Devices Division. 2 million may seem like a large number, but the division has revenue coming in from various sources that don't depend on Windows Mobile software licenses.

After acquiring Danger in February, Microsoft has now announced that its subsidiary teamed up with T-Mobile USA to release the new T-Mobile Sidekick. The device features support for video capture, playback, and sharing; wireless stereo music and media sharing via Bluetooth; quick friend search and group chats in instant messaging; customizable Web browsing; universal search across all phone applications and data; and a customizable shell. Collaborations like this one are great for pushing Microsoft services onto new phones, but they won't help much in revenue or unit sales since the Sidekick doesn't run Windows Mobile.

Further readingTodd Bishop's Microsoft Blog: Windows Mobile misses annual shipment targetMicrosoft: Press Release