Microsoft didn't just miss the boat with Zune. It watched and waved and heckled as the boat roared past. In 2007, Steve Ballmer told USA Today, "Now we'll get a chance to go through this again in phones and music players. There's no chance that the iPhone is going to get any significant market share. No chance. It's a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I'd prefer to have our software in 60 percent or 70 percent or 80 percent of them, than I would to have 2 percent or 3 percent, which is what Apple might get."
Of course, Apple's income from the iPhone currently exceeds Microsoft's income -- from all sources.
Ballmer was right about one thing. We got a chance to watch consumer markets unfold with phones and music players. Zune failed miserably. Windows Mobile accounted for 15.7 percent of the U.S. mobile market in January 2010, according to comScore, but in two years Microsoft's flagship mobile product slipped to 3.9 percent. Outside the United States, Windows Mobile never amounted to half a hill of beans.
Then there was the Kin, the short-lived square-ish mobile phone with social networking aspirations. In a move reminiscent of "The Cat in the Hat," in 2010, we were offered Kin One and Kin Two. Like Thing One and Thing Two, the Kin was locked in a software box -- a client-server architecture that didn't allow third-party apps -- although the hardware was based on an ARM design. Verizon started selling Thing One and Thing Two in May 2010; 48 days later, Verizon gave up and sent all of its unsold Kins back to Microsoft.
Last month, Wired ran a series of leaked internal Microsoft videos that show pre-release testing of the Kin, and the results were devastating: Testers couldn't figure out how to perform even the most basic functions. If you bought a phone, you would expect to be able to make a call with it, right? Silly mortals. Heaven only knows why Microsoft continued the project.
Then there's the tablet debacle. Bill Gates talked about the Tablet PC in his Comdex Fall 2000 keynote, and Tablet PC general manager Alexandra Loeb gave the details in a Microsoft press release from November 2000:
No compromises. Immersive. Twelve years ago. Thankfully, she didn't mention "fast" or "fluid."
The first Windows XP Tablet PC Edition tablets appeared in 2002 and drew loud applause from a small group of fans, along with skepticism from many corners. Ultimately, the market spoke. Windows Tablet PC hardly rates a footnote.
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