Microsoft avoids high-end flagship market, "hardens" from low-end market

Over the past two years, Microsoft has been working hard in the mobile market, but it's not doing much, and recently Microsoft has found a way to try to invade the Android camp with Low-cost products.

This change can be seen at this year's Microsoft MWC2015 Conference. No new flagship, no official version of WIN10. At this year's MWC conference, Microsoft's performance may have been a little disappointing. However, through the Conference, Microsoft has revealed some important information: After taking off the Nokia brand, Microsoft's hardware strategy is increasingly grounded, and began to try to use Low-cost products to rob Android Market share.

Avoid high-end flagship market, "Harden" from low-end market

At the MWC conference, Microsoft released two Low-cost, high-priced Lumia smartphones: Lumia 640 and 640 XL. This is the first two models that Microsoft has released as a "Microsoft Lumia" brand after abandoning the Nokia brand. Unlike other handset makers at the MWC convention, this time Microsoft just released the two low-priced midrange handsets.

In terms of specifications, the configuration of two mobile phones in the middle end. The Lumia 640 is configured with a four-core 1.2GHZ High-pass 400 processor, 1GB memory, 8GB storage space, 5-inch 720P screen and 8.7 million-pixel main camera; 640 XL is in the same processor and storage space as 6,401, but the screen upgrades to 5.7 inches and employs 1, 3 million megapixel Carl Zeiss camera. Software, two of mobile phones provide users with a year of Office 365 personal version of free access, in addition to mobile phones, users can also enjoy the full version of Office suites on PCs and tablets. It even provides up to 1 TB of OneDrive storage capacity. And Microsoft has pledged to upgrade to WIN10 for free in the future.

And the most attractive is the price of these two handsets, 640 and 640 XL's start price is 139 euros and 159 euros respectively, this position is equivalent to the domestic thousand Yuan machine.

Less than 200 euros in price, midrange configuration, and software services including Cortana, Skype, Office, Outlook, OneDrive, which makes 640 and 640 XL attractive in the low-cost market. Stephen Elop, executive vice president of Microsoft Equipment Group, argues that "because these two products are so affordable, they will look very attractive in developing countries and may even appeal to price-sensitive American consumers." ”

This time, Microsoft is not eager to launch the flagship model, but the release of low-cost low-end mobile phones, is its intention to develop a strategy.

On the one hand, because Apple, Samsung, HTC and other strength manufacturers have just launched flagship models, high-end market is bound to set off a burst of fighting, Microsoft at this time the launch of the flagship model will be in a weak position. According to Neil Broadley, Microsoft Mobile Marketing Director, Microsoft will launch its flagship model when WIN10 is officially released. Microsoft has shied away from high-end markets in the near future, and it is a wise choice to wait until Win10 is released to launch its flagship machine. On the other hand, Microsoft has found huge potential in the low-end market and has begun to try to grab market share with a low-cost strategy.

Using low-priced products, digging Android users "Corner"

In fact, as early as February this year, Microsoft launched a "Africa Initiatives" Africa project, plans to launch a 75 to 100 U.S. dollars in the African market WP mobile phones, in order to gain market share in emerging markets.

The launch of the 640 and 640 XL is a continuation of the low price strategy. Microsoft believes that the two low-end handsets can provide a better experience than the same price of Android phones, which may attract a large number of Android users into the Microsoft ecosystem.

The use of Low-cost high quality products, for those "fickle" Android users, Microsoft recently found a breakthrough.

A recent study by Microsoft has concluded that "Android users of Low-cost smartphones are far less loyal to Apple users in emerging markets." The Android phone experience is vastly different, with different versions of the Android experience, and security issues. As a result, this could easily lead to low-end Android users switching to other platforms. ”

"One of Microsoft's biggest opportunities is to secure Android users." ”

Chris Weber, vice president of mobile device sales at Microsoft, said at the MWC conference.

And in order to "win" more Android users, Microsoft may take some radical tactics. Chris Weber said, "We need to keep pushing for lower prices, but that's not the end, the price is the lowest but the value is high." On the one hand, Microsoft offers free software services such as Office 365 and one drive storage to increase the value of handsets, while Microsoft will continue to lower the price of WP handsets to compete with low-end Android handsets.

Building ecological alliances, digging up the "corner" of Android manufacturers

And Microsoft is not just trying to "dig" the Android user's "Corner", but it has already started targeting the Android camp as early as last year.

Last year, Microsoft began to dive into Shenzhen's white-label manufacturers to establish a technology eco-alliance. Through this alliance, Microsoft provides the cooperation company with the technology, the promotion, the channel and so on multi-level support, but the partner is responsible for the design, the manufacture and the terminal. In this alliance, most of the members come from Android's OEM/ODM vendors. According to the data released by Microsoft on November 27 last year, 24 OEM/ODM manufacturers have joined the Windows ecosystem in the Chinese market, among which there are more than 10 Onda, Taiwan Power, the original road and other Shenzhen manufacturers who are not well known to the public. By wooing these vendors, Microsoft can quickly draw on the Android model and quickly produce inexpensive, cost-effective equipment to tap into emerging markets such as Africa.

Microsoft has been trying for more than two years in the mobile end market, but has yet to find a way to change its market position. Android and iOS systems already account for 96.3% of the market, according to the latest data. In this case, Microsoft is becoming more grounded, even trying to rob Android of its market share with cheap products. However, this is only Microsoft's "self" out of a strategy, whether it can work, it will take time to prove.