Windows Phone 7 Boycotts?

By Jake • June 14th, 2011 • 10 Comments

Since its debut last year, I’ve watched Windows Phone 7 with some interest.

Similar to IE 9, IE 10 and the preview of Windows 8, WP7 surprisingly doesn’t suck, and as a long Microsoft-hater, I’ve been curious to see how they evolve.

After the Nokia news, WP7 seemed poised to make a serious dent in the smartphone market, with several analysts predicting Microsoft would leap into the top three within the next five years.

Then yesterday and today, I caught some odd news about reseller boycotts of WP7.

Survey reveals bias against Microsoft’s Windows Phone 7

. . . at several Verizon, AT&T and Sprint wireless stores in downtown Boston on Friday, every sales rep, without fail, tried to sell me an iPhone or an Android phone while inevitably dismissing WP7 with vague phrases like “In terms of productivity, it’s just not there yet,” or “I’m not really sure about that one. I haven’t really used it.”

Communities Dominate Brands: In Other ‘Bloodbath’ News: Recent Developments in the Smartphones Contest

. . . the latest news is that Microsoft’s WP7 is on its own reseller boycott.

Why is that? Its Skype, Stupid. Microsoft purchased Skype, perhaps a clever move for Microsoft the corporation, time will tell. But it was the death-nail to Microsoft’s ambitions in smartphones. Mark my words: No carrier will subsidise Microsoft WP7 phones that come with Skype. Voice calls account for 70% of mobile operator/carrier revenues, and 40% of their total profits. Skype would instantly destroy all that, like the fixed landline carriers/operators have witnessed. The mobile operators are not that stupid to subsidise their own death.

Interesting. Thoughts? Anyone out there care to comment on experiences with WP7 or this reported boycott at retail stores?

Find the comments.


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  • http://empoprise-bi.blogspot.com/ John E. Bredehoft (Empoprises)

    On the surface of it, it doesn’t seem like the Skype purchase, though important at a macro level, would result in such a negative response from individual sales reps. My first question is whether the sales reps get a lower commission for phones with Windows; that seems like a more logical explanation.

  • http://theappslab.com Jake

    There’s speculation that may be the case, but no one will confirm. Reading the PC Magazine story and the comments, it seems like MSFT botched the initial launch which turned retailers against them. There are also reports of high return rates among the few (one estimate says 1 in 500) people looking for WP7 phones.

    Sounds like low demand and poor experience is driving the apathy. Nearly all the anecdotes describing a sales person mention that person had a non-WP7 phone. So, maybe that’s the rub. Give the people on the floor WP7 phones, and they’ll sell them.

  • http://blogs.oracle.com/userassistance/ uvox

    Sales of this thing weren’t exactly setting the world on fire before the Skype deal. It’s been poor from the get-go. This looks like an attempt to blame the guys and gals at the sharp end when the fundamental problem might be elsewhere. Do sales people really come out with stuff like “In terms of productivity, it’s just not there yet” ? I’m impressed!

  • http://theappslab.com Jake

    Probably a combination of poor performance out of the gate and the deal w Skype souring carrier relationships as the phones mature. Handset makers may be distancing themselves too. Makes you wonder if that Nokia rumor is either the reason for some of this or in response to it.

  • Joonas

    Is semi-related news, Nokia has closed its own online store in Finland as of today. Don’t know if this is a sign of larger changes in distribution strategy but seems odd that they are getting rid of their only own retail channel (brick and mortar stores started closing a while ago) just as carriers and dealers are more or less giving up on Nokia altogether.

  • http://theappslab.com Jake

    Whatever the reason for a slow start, I actually think WP7 will gain traction by year end. Buying Nokia’s phone business makes a ton of sense for MSFT; I read numerous places that they always had tenuous relationships with the handset makers, who have mirrored this lately by throwing cash at Android.

    RIM looks to be headed south too lately, internal executive shakeups, poor earnings, what’s next?

  • http://www.garry.to joel garry

    Investors think RIM vaporware v. iPhone5 is a loser: http://www.cnbc.com/id/43439138

  • http://theappslab.com Jake

    Oddly, the PlayBook shows more innovation than anything they’ve done lately, seems like a strange time to get suddenly worried. Maybe last year as Android rose, but now? Weird.

  • http://www.facebook.com/christian.rendel Christian Rendel

    I don’t know about a retailer boycott, but since I’ve started using a Windows Phone 7 phone, I’ve noticed that lots of app providers cater to iOS and Android, but not WP7. Rather annoying.

  • http://theappslab.com Jake

    That would be a market share problem. Too bad more app developers aren’t all-in for HTML5 development yet, but give it time.