Refocusing Nokia phones away from the X brand is a "sound strategy...but is unlikely to be very successful in greatly increasing market share," Gold said. He called it a "first step down the path of making the phone business saleable," which could happen within 18 months.
Carolina Milanesi, chief of research at Kantar WorldPanel, said Microsoft's new strategy with phones and devices appears to be "go cheaper, to go wider" which she explained means having more lower-end products and getting into more wireless carrier product portfolios.
While Microsoft has been rumored to be designing a smartwatch to compete with Google and perhaps Apple, Milanesi said a smartwatch is not a top priority now. "Future products like a smartwatch depend on how they all fit into Nadella's strategy, but considering their focus is on productivity and platform and services, it would seem to me that something like a smartwatch would not be a key priority."
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