
When Steve Jobs took to the stage at MacWorld and announced the very first iPhone, heads around the world turned at just how innovative and consumer-friendly the product was. Microsoft’s initial reaction was dismissal, a decision that has hurt the company ever since.
Microsoft top dog Steve Ballmer’s reaction to the iPhone was typical. Dismissive, competitive, combative… His words have since come back to haunt him:
“There’s no chance that the iPhone is going to get any significant market share. No chance. It’s a $500 subsidised item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I’d prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.”
But after years of development, Microsoft has now admitted that the iPhone was the catalyst it needed to develop change in its stagnating Windows Mobile platform. Talking to the New York Times, Corporate VP of Windows Phone Joe Belfiore admits that the iPhone was at the forefront of their thinking.
“Apple created a sea change in the industry in terms of the kinds of things they did that were unique and highly appealing to consumers,” Mr. Belfiore said in an interview at Microsoft’s campus here. “We wanted to respond with something that would be competitive, but not the same.”
But what’s even more interesting are the events that led to the development of the Windows Phone we know today. After seeing the iPhone explode out the gates and change smartphones forever, MS engineer Terry Myerson called a management meeting for the Windows Phone group that lasted seven hours. With a new prototype build of Windows Mobile, Myerson demanded they decide whether anything could be salvaged from the mobile OS. The answer was, for the most part, a resounding no.
Consequently, that led to the decision that Microsoft would start from scratch with its mobile operating system. It was a tough decision that allowed Android to grab massive amounts of market share as Microsoft was busy building its new platform.
Or as an ex-manager at Microsoft, Charlie Kindel described it in the Times piece, similar to the boulder that saw hiker Aron Ralston amputate his own arm:
“This boulder comprised of Apple and Blackberry rolled on our arm,” said Mr. Kindel, who left Microsoft last summer. “Microsoft sat there for three or four years struggling to get out.”
2012 is a big year for Microsoft. It needs to succeed with Windows Phone this year in a big way. With its hopes pinned on its partnership with Nokia and a huge marketing budget, 2012 is going to need to be huge for the up and coming mobile OS.



















Jon
Monday, January 9, 2012 at 10:39 AM2012 is going to be nothing?
Deed
Monday, January 9, 2012 at 10:44 AMeveryone, to the bomb shelters!
Nick Broughall
Monday, January 9, 2012 at 10:56 AMThat was weird. Fixed!
Steve
Monday, January 9, 2012 at 7:30 PMMicrosoft and Nokia = Dumb & Dumber!
Barry
Monday, January 9, 2012 at 10:46 AMSteve shot himself in the head when he said that, of course it was created because of iPhone, so was Android. I was and still am of the opinion that he should be kicked out of Microsoft completely because what he said did a lot of damage and the people that know a thing about technology knew that the iPhone would make a huge stir. I’ve never liked Steve being in the CEO position at Microsoft, he doesn’t seem to know much (e.g. Courier, new Xbox and WP7)
Microsoft is still living off their Office, server and workstation products, Bing is costing them millions (I like Bing a lot) and phone department will cost them millions as well but I’m hopeful that the WP7 market will pick up for them from 2012-2013 onwards.
Nick
Monday, January 9, 2012 at 11:44 AMBallmer has proved time and time again he’s a big sweaty idiot.
light487
Monday, January 9, 2012 at 10:55 AMI was going to make a snide comment about the iPhone actually being good for something in it forcing other manufacturer’s to lift their game but objectiely, the iPhone is a good handset.. it’s an awsome handset.. I just don’t like it personally
Barry
Monday, January 9, 2012 at 11:11 AMLight487 – the iPhone is a good mobile phone but it’s starting to get long in the tooth and needs a kick. It’s had it’s day and Android and WP7 are passing it by but many people stick with the iPhone because they try different things or are too stubborn like some hardcore Apple Fans.
Barry
Monday, January 9, 2012 at 11:13 AMoops…typo, sorry. That shoudl be DON’T try new things. Sorry
warcroft
Monday, January 9, 2012 at 2:47 PMAnd people have already invested in the Apple Ecosystem. . . phones, laptops, apps, etc. . . so are reluctant to change.
Kev
Monday, January 9, 2012 at 7:49 PMOr people have dropped so much money into the iTunes store waiting for windows/android to catch up, they don’t feel like wasting their money. Unless there’s some significant advantage over iPhone, and unless I can get back the hundreds or thousands of $ I spent on iTunes – there’s no way in hell I’m going to change now.
Sicarius123
Monday, January 9, 2012 at 8:09 PMIf you spent thousands in the iTunes store on apps, wtf?
As for music though it should all be available DRM free these days.
Kroo
Monday, January 9, 2012 at 9:05 PMMaybe Barry, it works for them. Ever tried syncing an android phone to a Mac or PC? Apple not only make good products that work, they make it seamless to work with, Mac and PC’s. Google isn’t writing applications to make anything they produce work seamlessly with PC or Mac. Don’t dump on people because of their choice. If it works for them, good. Live and let live. If their experience is bad, they will change, don’t you think?
MDolley
Monday, January 9, 2012 at 11:11 AMI think the problem with Microsoft being late to the game is that developers don’t seem interested in a third ecosystem.
When was the last time you saw an announcement that said “Available for iOS, Android and Windows Phone”? Look at the Ar.Drone 2.0 Article – “The app that launches along side version 2.0 will support virtually every iOS and Android phone and tablet you can think of.”
I also think some people are resigning themselves to failure – Did anybody read the Kotaku article about Xbox Live games coming to iOS and Android?
http://www.kotaku.com.au/2012/01/microsoft-job-hints-at-mobile-xbox-live-games/
Microsoft keep whittling away the unique features of Windows Phone.
As a Windows Phone user I don’t feel compelled to stay with the platform.
Barry
Monday, January 9, 2012 at 12:40 PMWhen was the last time I saw “Available for iOS, Android and WP”?
EverNote for one and soon Skype.
:-p
MDolley
Monday, January 9, 2012 at 12:50 PMI’ll pay EverNote, but I am not sure Skype counts. I mean if you have to buy a company so they’ll develop for your platform you’re in trouble :)
Barry
Monday, January 9, 2012 at 1:29 PMI think yes Skype because M$ has huge plans for this, putting it into Messenger, Lync, Exchange, Office and Office 365 so I would include Skype as well.
You have Angry Birds (why I don’t know hahaha) as well and quiet a few others as well, Twitter, Facebook, LinkedIn are there but built in so you don’t need to install a different program for them. :-)
MDolley
Monday, January 9, 2012 at 2:16 PMMost of the big name games were released by Microsoft Game Studios – i.e. they paid to get them on WP.
I agree that social apps are all there, and big internet companies like eBay. What is noticeably missing is the “Hey we have an app” companies. Check out the page for Vodafones Cricket app – http://www.vodafone.com.au/personal/cricket/cricket/live-app/ Notice anything?
Apollo
Monday, January 9, 2012 at 12:53 PMWhat people fail to recognise, is Windows Phone offers a truly unique experience. Its integration with Windows will be its biggest selling point, something that Apple is unique to its own OSX (even if its windows integration is pretty half-assed). Android doesnt have its own platform to work from and every man and his dog has a windows pc. Allowing for seamless movements between PC , Xbox, Skydrive and Office environments mean that a Windows Phone brings unique versatility.
It eliminates compatibility issues with drivers on android (lets face it, android drivers suck). iTunes is STILL a massive resource hog for no reason at all. You’d think after 10 years they would have at least made it more efficient :S
Windows Phone brings something unique. It does something nothing else does – compatibility. The one thing Apple and Google struggle with, integration into a PC. Theres room for a 3rd player, its just a matter of if Microsoft can actually get all the ecosystem together.
MDolley
Monday, January 9, 2012 at 1:32 PMI am actually quite surprised by how little integration with Windows there actually is, and the integration that is present is becoming less exclusive.
Can I sync Outlook to the phone directly? No, only by going from Outlook to the cloud then from the cloud to the phone
Can I sync a Microsoft word document to the phone? No this needs to either be saved to SkyDrive or emailed to the phone.
Can I watch a TV Show I recorded on Windows Media Centre on my phone? Not that I know of.
If I take a photo, can I have it download directly to my Windows PC? Not really. It saves a small copy to SkyDrive that you can then download. The other option is to sync with the Zune Client.
And let’s look at exclusivity?
There is an Xbox iPhone app
There is a SkyDrive iPhone App
There is a OneNote iPhone App
The iPhone can sync with Outlook
The iPhone works with Exchange and Windows Live
I honestly think that for somebody heavily investing in the Microsoft ecosystem, the iPhone would be just as useful.
Barry
Monday, January 9, 2012 at 1:42 PMI have a problem with syncing with Outlook directly as that would require your computer to be on all the time so you sync with the server that stores your Emails, this is what (I think) all phones do.
Apple and Google pay Microsoft to use the Exchange Sync technology so that doesn’t really count :-)
I can watch movies on my phone or a television but I have to have the computer on for that and I have to do that via a Wi-Fi link otherwise I pay big $$$ for it.
You can do a lot with WP7, you just have to look it up, read about it and maybe try it. In the end you are right though. Any of the smartphones can do all those things, Apple goes after consumers and so does Google and both are using that to get into the business side. Microsoft is targetting business first and consumers second which is good because I use my phone for business first and private second.
MDolley
Monday, January 9, 2012 at 2:07 PM“I have a problem with syncing with Outlook directly as that would require your computer to be on all the time so you sync with the server that stores your Emails, this is what (I think) all phones do.”
By Outlook sync I meant more the Contacts and Calendar side of things. Stuff that may be stored locally on your machine.
“Apple and Google pay Microsoft to use the Exchange Sync technology so that doesn’t really count :-)”
But when you are talking about exlusivity and integration it doesn’t really count as a plus for Windows Phone when everybody else also does exchange.
“I can watch movies on my phone or a television but I have to have the computer on for that and I have to do that via a Wi-Fi link otherwise I pay big $$$ for it.”
Again, I was talking about integration. There is none between Windows Phone and Windows Media Centre. Both of them are just sitting there, waiting to talk to eachother. (There are some third party WMC remote apps)
“You can do a lot with WP7, you just have to look it up, read about it and maybe try it.”
Having been a Windows Phone user for over a year now, I know that you can make it work well with other Microsoft products and technologies. I was just saying in response to Apollo that the intergration isn’t really much better than the competition. It should be amazingly better, but it currently isn’t.
Dudefella
Monday, January 9, 2012 at 12:59 PMIs there such a thing as a decent budget windows seven phone? I have an iPhone 4, but all I really use it for is surfing, facebook and the occasional game of sudoku.
I want to replace it with a windows 7 phone because I like the OS, but I don’t want to fork out $800 for a Nokia 800. What are my options?
Apollo
Monday, January 9, 2012 at 1:01 PMTry grabbing a Samsung Omnia or a Samsung Focus, both have the best specs of the previous generation and should be relatively affordable now :)
Dudefella
Monday, January 9, 2012 at 1:09 PMThanks mate I’ll look into it – any idea whether they work on Telstra’s NextG network?
Apollo
Monday, January 9, 2012 at 1:21 PMThe focus was available on AT&T in the US. If anything, its most likely. Its only this year Samsung’s started producing one universal radio antenna that supports all bands rather than 4.
SilentWolf
Monday, January 9, 2012 at 2:04 PMI imported my Focus from the US unlocked, works perfectly.
Barry
Monday, January 9, 2012 at 1:32 PMDudefella – I got my HTC WP7 phone for $499 outright and designed for Australian standards and this was from a local phone shop that sells from Optus, Voda and Telstra.
I’m always on edge with phones that are imported from US or somewhere else because the networks over there aren’t always 100% with Australia’s
warcroft
Monday, January 9, 2012 at 2:52 PMComing in the next six months are some lower end budget Windows phones.
I dont know how low you consider budget to be but. . . the Nokia Lumia 710 is starting to be released worldwide to rave reviews.
Sicarius123
Monday, January 9, 2012 at 8:14 PMThere’s a reason why Outlook only comes in small business and professional versions of office. It is a corporate program which is relatively clunky to use for a home user.
A home user is far better off using webmail that can be accessed anywhere and store their email/contacts/calendar in the cloud, and that will also sync all those things perfectly with a modern smartphone.
Matttm
Monday, January 9, 2012 at 2:49 PMMy experience with windows phone was that it was a constant waiting game. When I purchased a htc mozart in march, I had to then wait for mango update, then I had to wait for the apps I liked to apply the mango update, now wp7 users are waiting for tango/apollo to come round and for more apps to come.
Microsoft acquired skype last year and previewed the app when they showed off mango at mix 11, but we still haven’t seen anything of it.
I essentially got tired of seeing my friends with their iphones and androids being able to do so much more with their phones (apps selection wise) that I got myself an android phone. Until I see a great WP8/Apollo phone come out.
I do love WP7 and appreciate the great things that were already baked into the system (Email, Calendar, People, Music, Mobile ie9, Pictures; are excellent on wp7). But the apps I wanted aren’t on there yet (Skype) and the apps that are supported; most do not have equal functionality to their iOS/Android counterparts. Runkeeper on wp7 hasn’t even updated to Mango yet and whatsapp lacks additional features.
My biggest gripe about windows phone is that they haven’t fixed the volume controls. The ringer, media, and alarm volumes should be all separate not global. It annoys me the most because dumbphones from the early 2000′s have this feature.
warcroft
Monday, January 9, 2012 at 3:00 PMIm yet to an issue with apps.
Whatever they can do I can do with my WP7.
Forget Siri, Ive got Ziggy!
warcroft
Monday, January 9, 2012 at 3:06 PMAnd you cant really blame MS for third party developers not updating their apps to Mango.
And really, what difference does it make? Not much really.
Wok
Monday, January 9, 2012 at 4:15 PMI honestly think it’s the best mobile OS on the market but it needs more well made apps (MS seriously should just make a few more) and a few little tweeks like multiple volumes..
Also there needs to be an X on the toast notifications.
MDolley
Monday, January 9, 2012 at 4:24 PMYou can just swipe them to dismiss
Franz
Monday, January 9, 2012 at 9:21 PMMicrosoft just need to do what they always do when they want something done, throw a huge bucket of cash at it.