Instead, Microsoft is restructuring its smart phone business, Turner explained. The company will focus on developing a handful of innovative devices to "showcase our uniqueness in solutions," he said, noting that the company is changing its manufacturing, distribution and marketing processes around phone manufacturing.
One bright spot in the mobile space for Microsoft is the company's Enterprise Mobility Suite set of cloud services.
EMS is "the single hottest product in the history of Microsoft," Turner claimed. EMS provides security and support services for iOS, Android and Microsoft devices, with the aim of reducing the complexity in supporting multiple platforms.
EMS will be a "billion dollar product," Turner predicted, noting that EMS subscriptions had increased by 700 percent, though he did not specify the time period in which this rapid growth occurred.
Sign up for CIO Asia eNewsletters.