Microsoft Volume II

Early Vision

Microsoft's early vision for mobile computing was driven by Bill Gates, who foresaw the importance of mobile devices as early as 2001. Despite this foresight, the company's execution fell short, with Ben Gilbert noting that Windows Mobile was more of an enterprise tool than a consumer-friendly product 1. The iPhone's launch in 2007 further disrupted Microsoft's mobile strategy, as David Rosenthal explains, leading to a series of missteps, including the acquisition of Danger and the failed integration of its technology 2.

   

Business Model

Microsoft's business model for mobile was fundamentally flawed. David highlights how the company charged OEMs for its operating system, unlike Google, which offered Android for free and monetized through services 3. This approach made it difficult for Microsoft to compete in a low-margin industry. Additionally, the smartphone industry evolved rapidly, with Ben pointing out that the iPhone set a new standard for user experience and hardware quality, which Windows Mobile could not match 4.

   

Strategic Shift

The iPhone's success forced Microsoft to rethink its mobile strategy, leading to the development of Windows Phone. However, Ben explains that the company's old business model, which relied on selling operating systems to OEMs, was no longer viable 4. David adds that Google's acquisition of Android and its transformation into an iPhone competitor further marginalized Microsoft's efforts in the mobile space 2.