Microsoft’s Misdial Cost $7.6 Billion | Koeppel Direct

Microsoft’s Misdial Cost $7.6 Billion

microsoft windows phone

Microsoft was once the biggest software company on the planet, with an unbreakable grip on the hottest tech of the time: the personal computer.

Unfortunately, putting tiny computers in every pocket has meant that software and hardware companies have had to adapt to mobile technology. Apple and Google have made this transition relatively easily, but Microsoft’s eternal hope for the PC’s continued longevity robbed them of their ability to flex when the mobile revolution was upon them.

Even though the words “Windows Phone” are enough to make most Smartphone users smirk, Microsoft is still trying to find their place in the fast-paced world of mobile technology. It’s clear that the technological landscape is diverging quickly, with the sales of PCs dropping dramatically as Smartphone and tablet sales increase. It’s not necessarily vital for a company to have a stiff hold over both areas, but it’s still a good idea to have a hand in each arena, like Google has done with their Chromebooks.

Microsoft Restructures Again

The latest controversy out of the MS camp is about yet another restructuring attempt. It was bad enough when Microsoft declared that they would be cutting 18,000 jobs to help consolidate their workforce after purchasing Nokia’s Devices and Services business for a cool $7 billion in September 2013. Now, it has announced the loss of another 7,800 jobs due to restructuring that they’ve estimated may cost between $750 and $850 million.

And that’s after the $7.6 billion loss that the company has already recorded. With Microsoft’s value hovering around $9.4 billion, there’s not much more it can lose to their attempt to get a grip on phone sales. It feels like a losing battle when fewer than three out of every 100 smart phones bears the Microsoft logo and they lose 12 cents on every phone before they even leave the factory.

Still, if Microsoft can find its feet, the company has the hardware and the software to increase its still-meager market share in the Smartphone arena. Whether it’s too little, too late remains to be seen, as Apple and Google run a competitive battle for the heart and soul of mobile laps ahead of this once untouchable goliath.


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