I have to admit to being slightly bemused by Microsoft‘s announcement yesterday that it’s planning to set up its own retail stores business. The company has done exceedingly well in getting its software and solutions preloaded onto many device manufacturers’ products, from computers to games consoles, and by making the best use of alternative distribution channels such as the Internet and resellers.
What, I wondered, would Microsoft gain by aggressively targeting high-street or shopping mall consumers that it doesn’t already do so well through traditional channels?
The cost of leasing, stocking and staffing these shops would be very high and maybe difficult to justify in the current tough economic environment. Yes, Microsoft has the cash reserves to achieve this in very short order, but it must be confident on seeing a reasonable return on investment in a short period of time.
While I can see the attractiveness in being able to sell Xboxes etc directly to the masses, I’m not certain that Microsoft can do much more than is already being accomplished through partners. A big, blowsy, unique product would fit the fill and fill stores – but what could it be?
An own-brand smartphone?
But Microsoft has already said it isn’t interested in developing its own device.
So maybe an own-brand smartphone could materialise within the next 12 months, possibly early in 2010 when the next iteration of Windows Mobile is expected to materialise.
With device makers increasingly focusing on other operating systems, such as Android, and as users and partner vendors tire of the same-old Windows Mobile look, maybe Microsoft has realised that a more thorough regeneration is needed if it is to avoid suffering the same fate as Motorola?
Just an idea…
Tags: Android, distribution, Micosoft, mobile, mobile device, mobile handset, mobile phone, Motorola, operating system, OS, retail, smartphone, wholesale, Windows Mobile
If they do this, I have to believe they have a lot more up their sleeves than a smartphone. I’d put my money on home networking/home media/management centers. Something that ties TV, internet, voice, gaming, home automation all into a single, easy-to-install consumer electronics device. But it’s anyone’s guess. Microsoft has so much “unreleased” technology sitting in their labs, just waiting for the right time to be productized marketed.