Originally Posted by AppleInsider
But if Windows Phone 8 continues to struggle, the company could decide to [sic] its own hardware, in an effort to spur sales.
Because Microsoft's new business model is to sell their own hardware at a loss (original Xbox, first years of Xbox 360, Zune, KIN) then cross their fingers and toes hoping that they will eventually earn back all that lost money through software sales. Uh. Huh. Good thinking there, Ballmer.
Microsoft's old business model was, and still is, to 1) force corporate IT shops into expensive Office upgrades and to 2) force PC OEMs to pay them The Windows Tax for every PC they sell (whether or not those PCs actually come with Windows pre-installed.) Nice work if you can get it. And note that the word "force" is vital to Microsoft's old business model.
Unfortunately (for Microsoft anyway) they can't "force" anybody to buy Windows Phone hardware. Or software. Not corporate IT, not techno-moron middle-of-the-bell-curve consumers, not tech-savvy young adult hipsters with up-to-the-minute chunky black eyeglass frames, not teens who still remember KIN, not even octogenarians who just don't care. No, Microsoft simply can't force anybody to buy Windows Phone hardware.
Microsoft needs to pull customers in with hardware / software quality, depth / breadth of media content and delivery infrastructure, interoperability with other Microsoft ecosystem products, and that intangible, priceless, impossibly rare attribute: mindshare. You can't buy mindshare. Microsoft has tried and failed for decades. The whole "pull" concept is totally alien to them. Instead, they're still trying to push. As in blowing millions of marketing dollars on illogical song-and-dance ads instead of simply showing the product and what it can do. Because Microsoft's products, unlike Apple's, don't sell themselves.