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Tuesday, December 27, 2011

Kindel: Yes, Windows Phone is Superior, But Here's Why It's Not Selling


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When it comes to Windows Phone, former Microsoft general manager Charlie Kindel knows what he's talking about. Heck, I'd listen to Charlie no matter he was talking about: This is a guy I've know for years and years, respect fully, and consider a friend. And this week, he offered some perspective on Windows Phone, which is technically superior to the competition but fairing poorly in the marketplace.

As a bit of background, Kindel is a 21-year Microsoft vet, and his last gig at the software giant was leading its partner program for Windows Phone. He left Microsoft on September 1, 2011, triggering a bit of soul searching here and elsewhere. And in recent days, he's provided some interesting perspectives on Windows Phone, first in the comments section of a blog, and then later in a post to his own blog, Windows Phone is Superior; Why Hasn’t it Taken Off?

"People ask me all the time why, if I think Windows Phone is such an excellent product, sales appear so lackluster," he wrote in his original comments. "Apple circumvented [fragmentation] by cutting the device manufacturer out and used that fact to force the carriers into being even more of a fat dumb pipe ... Android has been wildly successful because it was built to reduce friction between all sides of the market ... it also enables too much fragmentation that will eventually drive end users nuts."

"Windows Phone has taken a different approach," he adds. "It raises it's middle finger at both the device manufactures and carriers. It says 'here's they hardware spec you shalt use'. And it says 'Here's how it will be updated' (to the carriers). Thus both of those sides of the market are reluctant. Especially the carriers. This is why, despite being a superior PRODUCT to Android, Windows Phone has not sold as well."

Fascinating.

Expanding on this concept on his own blog, Kindel further added that Microsoft will need to dramatically up its advertising dollars and provide the proper incentives to the retail sales staff at wireless carriers who are currently ignoring Microsoft's platforms.

"End users just do what they are told (by advertising and retail sales professionals [RSPs])," he writes. "Carriers own the marketing money and spend billions a year. The money is provided by the other sides of the market: OS providers & device manufactures, but the carriers get to spend it; they are the aggregation point where the money actually gets spent. The carriers choose what devices get featured on those TV ads.  They also choose what devices to train their RSPs to push. They choose to incent the RSPs to push one device over another."

Put simply, by doing the right thing--taking control of both the hardware spec and the updating process away from its hardware maker and wireless carrier partners--Microsoft has incensed those partners just enough to cause them to not push Windows Phone in the marketplace. And by pushing more heavily on the "frictionless" platform--Android, which comes with no such restraints but is also thus ultimately "worse" for consumers--Microsoft has implicitly helped create the current conditions in which Android can flourish and Windows Phone can whither.

"Spending marketing dollars on advertising Android devices is and an easy decision for the carriers," Kindel adds. "Pushing RSPs to push Android is easy."

"I would like to believe that at the end of the day the superior end to end experience for the end user matters more than anything."

So would I, so would I. But if I've learned anything in 18 years of covering technology, it's that the best products don't always win. In fact, if anything, they rarely win at all.

Troubling.

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  • Posted @ December 29, 2011 06:15 PM by Mustang17

    Those who diss the Wp7 obviously haven't used one. It really is a beautiful and well thought out experience. It makes the hunt n peck Os's seem so dated. BeforevI got this phone, there were those who insisted I should get an iPhone. Not a chance mate. Now they are rather envious of its beauty and smoothness, especially in combination with the Lumia. Teenagers etc are now bypassing the iphone simply because their parents have them. That would be soo uncool. I have to say though, I don't give a damn what phone anybody else has. Typing on it is easy, I just typed all this on my Lumia 800.:-)

  • Posted @ December 29, 2011 02:37 AM by Helmut Windl

    In my eyes the reason for the lacking success is pretty obvious. You just have to ask teens what they think about WP7 and you will get one answer over and over again: It looks ugly! Design at the bleeding edge like MS does with Metro is an extreme risk and almost never succeeded in the market before. Since I'm working in the field of HCI for more than 17 years I have learned that ease of use is not a product characteristic that is noticed by users. Good UI design means: It just works as expected, not more, not less - but is not perceived consciouly as positive property. Therefore the look of a product is extremely important form market success in the area of Consumer Electronics. Reduced design like exercised in Metro by reducingand and eliminating decorative graphical elements, colors, and effects to simplify the use impairs the attractiveness and the lacking success we currently see is the result.

  • Posted @ December 28, 2011 02:16 PM by yoshipod

    @ spaul40 & mkroehler & dsharp

    This is exactly why Apple developed the Apple Store, and why they are very selective about allowing their products in other retail outlets.

    For years, Macs got the same treatment you all described. This is what MS has to fight against in order to make WP7 successful in the marketplace.

    The question is do they value it enough to fight for it, as Apple had to do with the Mac OS?

  • Posted @ December 28, 2011 01:19 PM by spaul40

    Anyone who has sold into retail stores knows that if a customer walks in and asks for product X, you show them product X and tell them how great it is. You do this even if product Y is a better product. This person came in sold on a product. You have to have a GOOD reason to spend the extra time to try to sell them a different product - like a spiff. In retail, dollars directly to the selling salesperson is called a spiff. If I make $20 from my employer for selling an iphone with 2 years of service, I will try to sell brand X if I can make $20 from my employer and an additional $25 from the manufacturer for that sale. If I am good at what I do and with a good amount of traffic, I can make an extra $1,000 to $2,000 each month from spiffs. Not all retailers will let a manufacturer pay spiff money to their salespeople as they are not really in control any longer - the manufacturer is; however, if sales increase, they really shouldn't care. Make sure you spiff the store manager/owner for these sales also - not the same amount but if they have 5 sales people and each one makes $1,000 a month from spiffs, the manager/owner should get $1,000 to $1,500 in spiff money per month. Once the word spreads on how great a product you have and people start walking into the store asking for your product, the spiff money can be reduced and eventually can go away unless another manufacturer tries to spiff your sales to them.

    The retail industry sucks! They are the sheep herders and we are the sheep.

  • Posted @ December 28, 2011 11:51 AM by mkroehler

    It's not selling for two reasons - the big box stores don't want to carry another product line and the retailers/distributors who do aren't carrying enough. I've walked into a number of retailers (Best Buy, Wal-Mart, Costco, AT&T Store, etc), looking for Windows phones (specifically the HTC Titan) and you're lucky if they carry one, at all. It's easier for the monkeys behind the counter to say "will that be Apple or Android"? than to have to deal with another platform. But, even if you find someone who does carry one, they're likely out of stock. I've looked for the Titan in a couple of AT&T shops and Best Buys and neither had any in stock. And, I'm not alone alone. I've seen a few other folks have had the same problem...

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