Models show off 'Windows Phone IS12T' smartphones during its press preview in Tokyo on July 27,... [+]
Microsoft will officially enter the largest mobile phone market in the world, China, this month with a series of high-end smartphones as well as budget devices powered by Windows Phone Tango, an announcement it made during Mobile World Congress 2012. [1] Microsoft launched Windows Phone more than a year ago, but has failed to gain any significant traction while Apple's iOS and Google's Android are leading in terms of sales.
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Windows Phone Tango: Microsoft’s Ticket to China
Microsoft aims to address low sales with the launch of Windows Phone Tango, which is targeted at the budget smartphone market, and should help it increase its market share with cheaper devices. We expect China to become the largest smartphone market in 2012, surpassing the U.S. which has traditionally held the title.
Apple and Google are both looking at the growing Chinese smartphone market for the next stage of growth. With Windows Phone Tango, and a series of new devices unveiled by its partners at MWC 2012, Microsoft has a fighting chance of capturing significant market share before it’s too late. Nokia, its largest partner, will be leading the charge in China with its budget product, Lumia 610. HTC, LG and ZTE will also be launching lower-priced devices which will make this space more animated.
Microsoft also unveiled a Chinese version of the Windows Phone Marketplace recently, and opened up submissions from Chinese app developers. The company will also be rolling out Windows Phone Tango powered smartphones globally and will focus on the high-end segment with Windows Phone Apollo. The next couple of quarters are going to be decisive for Microsoft.
Windows Phone, Xbox, Kinect and other entertainment devices account for nearly 6% of Microsoft’s $38 Trefis price estimate, which stands around 15% above its market price.
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