Windows Phone 8 announcement puts partner Nokia in tough spot

21.06.2012

However, the political squabbles will be a minor bump in the road for Microsoft, say analysts. Earlier this month, IDC released that reiterated its previous predictions for Windows Phone to assume the No. 2 spot in the smartphone race, and forecasted a 46% compound annual growth rate from 2012 to 2016. Google's , Apple's iOS and Research In Motion's BlackBerry are all expected to lose market share during that time, IDC said.

Even after the Windows Phone 8 announcement, which Lam says "kind of resets everything," IHS predicts similar gains for Microsoft in the smartphone market. Although the firm pegs Windows Phone for the third position in the market by 2016, behind Android and iOS, it forecasts Microsoft's smartphone OS market share to grow from 35 million device shipments in 2012 to more than 150 million in 2015. Nearly all of this success, according to both firms, hinges on Nokia's performance.

IDC included in its report that it only predicts such large gains for Windows Phone "assuming Nokia's foothold in emerging markets is maintained."

Lam, meanwhile, suggested Nokia is Microsoft's only reliable partner. Samsung has built up such a strong following with its Android devices that it doesn't need to devote too much time, effort or money into a platform that is still building a following. HTC has been proactive in its adoption of Windows Phone 8, with plans for three WP8-based smartphones with 4-inch screens or larger, . However, HTC recently experienced a 35% year-on-year drop in revenues, because of which Lam "doesn't think they're going to be leading a lot innovation." And although Huawei has announced its support for Windows Phone 8, it's too early to tell how involved it will be.

Support from such a diverse group of manufacturers bodes well for Microsoft, as does its recent progress in building a mobile app community. Windows Phone recently reached the 100,000-app milestone, and just this week gained two of Zynga's most popular apps, Draw Something and Words With Friends. With that, Microsoft continues to patch one of Windows Phone's biggest faults, and makes it more appealing to an ever-increasing smartphone market.