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Telef?nica looks to break iPhone and Android 'duopoly' with aggressive Windows Phone 8 push

post #1 of 28
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Unsatisfied with the current state of affairs in the mobile marketplace, one Spanish wireless carrier is looking to shake up what it calls an iOS and Android 'duopoly' by pushing Microsoft's Windows Phone 8 on its networks in Europe and some emerging markets.

iphone 4s
Nokia's Lumia 520 may be one of the low-end devices Telef?nica will push in emerging markets.


Spain's Telef?nica announced on Wednesday that it would be pushing forward in a joint effort with Microsoft to popularize that company's struggling Windows Phone 8 operating system in order to mitigate the dominance of both Apple's iPhone and Google's Android operating systems in the mobile sector. For at least one year, the Spanish carrier will be hawking Windows Phone 8 devices with enhanced marketing in the United Kingdom, Germany, Spain, Mexico, Brazil, and Chile.

A release from the company points out its commitment to supporting "additional mobile operating platforms as an alternative to the current duopoly of Android and iOS." The partnership will require the carrier to work with Windows Phone 8 device manufacturers to ensure that their handsets are available in the affected countries.

In a statement, Telef?nica's chief operating officer Jos? Maria ?lvarez Pallete said that Microsoft's willingness to partner with carriers was a chief reason behind the decision.

?An associate partner such as Microsoft is chosen as a result of its operator-focused business approach. The Microsoft business culture is based on a model of value creation through its partners associates, which fits in perfectly with our culture and also with our way of doing business,? Pallete said.

Apple famously has been unwilling to let carriers preinstall software on its iPhone, something that Microsoft may be more willing to do in order to grow market share for Windows Phone 8. Google, meanwhile, often has services ? such as mobile payment systems and location services ? that duplicate features that carriers would like to provide to their customers for a fee.

Currently, Windows Phone 8 sits in a distant third place in the smartphone OS race, with just seven percent of shipped devices in the first quarter of this year. Android and iOS, by comparison, combine to account for more than 90 percent of devices shipped.

Telef?nica is no stranger to supporting alternative operating systems in the face of Android and iOS' dominance. The carrier is also a partner in the Firefox OS alliance, and it will, along with a number of other carriers and manufacturers, market devices running that operating system in developing markets.
post #2 of 28
Because Windows Phone 8 has broken out everywhere else!

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post #3 of 28

"Unsatisfied with the current state of affairs in the mobile marketplace, one Spanish wireless carrier is looking to shake up what it calls an iOS and Android 'duopoly' by pushing Microsoft's Windows Phone 8 on its networks in Europe and some emerging markets."

 

After they get that huge check from Steve Ballmer of course.1cool.gif

post #4 of 28
Quote:
Originally Posted by lkrupp View Post

"Unsatisfied with the current state of affairs in the mobile marketplace, one Spanish wireless carrier is looking to shake up what it calls an iOS and Android 'duopoly' by pushing Microsoft's Windows Phone 8 on its networks in Europe and some emerging markets."

 

After they get that huge check from Steve Ballmer of course.1cool.gif

 

That's pretty much how I read it as well. Microsoft may also allow them to install crapware on the phones.

post #5 of 28
Translation: $MSFT is paying for all the marketing costs so we have nothing to lose ourselves.
post #6 of 28
No wonder Spain is such a mess!
post #7 of 28
Quote:
Originally Posted by Neil Martin View Post

No wonder Spain is such a mess!

This is not a true observation.

Telefonica's operations are not tied to Spain at all. Their O2 brand is present throughout most of Europe and not at all a garbage brand.

O2's problem is that they do not have the coverage and brand power to be among the top providers in most places. In Germany they are number 3, behind Telekom and Vodafone. The number 3 spot means that you simply can't ask the same prices as the leading providers (e.g. a contract that costs $60/mth on T-Mobile is only $30 on O2), but people will still expect you to offer the same subsidies. Of course, that does not compute. Nokia and others are offering WP8 devices for a fraction of what Apple's devices or current Galaxy-line Samsung devices cost. Nokia offers unlocked WP8 devices for less than what the iPhone 5 and the Galaxy S4 cost after subsidies. Of course, these devices are worse, but they allow providers like Telefonica to offer something that still leaves them some margin. What we see here is nothing else than normal marketing.
post #8 of 28
In addition to a likely large share of this bet being paid by Microsoft, this strikes me as, "you think US carriers don't care about their customers? Watch this. We will push a product they have clearly shown no desire to purchase, and to hell with what they actually want. Hey, any old Palm Prēs lying around?"

(Note: not a bash of webOS. I loved webOS. Just that the hardware didn't sell either)
post #9 of 28

"An associate partner such as Microsoft is chosen as a result of its operator-focused business approach"

 

That there folks pretty much says it all.  It is ridiculous MSFT is trading at 80% premium to AAPL based on PE ratio.  In the face of failures in the tablet, smartphone and core PC markets.   It's only a matter of time.   I say,  < 3 years  

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post #10 of 28
Good luck!
post #11 of 28

Spain.  The land of 25% unemployment.   No wonder free Android phones are all the rage.  I'm sure Google and Amazon will earn a lot of search and content revenue from this market  

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post #12 of 28
'An associate partner such as Microsoft is chosen as a result of its operator-focused business approach. The Microsoft business culture is based on a model of value creation through its partners associates, which fits in perfectly with our culture and also with our way of doing business'

On the other hand, Apple has a well known customer focused business approach. This is why they are the company that leads the market, rather than an also ran, like WP8.

Delight the customers, and the profits will follow.
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post #13 of 28
Quote:
Originally Posted by Red Oak View Post

"An associate partner such as Microsoft is chosen as a result of its operator-focused business approach"


That there folks pretty much says it all.  It is ridiculous MSFT is trading at 80% premium to AAPL based on PE ratio.  In the face of failures in the tablet, smartphone and core PC markets.   It's only a matter of time.   I say,  < 3 years  

I wouldn't say that PC market is failing. I'd be surprised to hear that number of PCs in use is declining. That market share did reach maturity and people don't have reason to buy new PC as often as they did, but I expect PCs are here to stay.

Windows smartphone sales since it's fresh start are growing faster than iPhone and Android did in same timeframe since introduction, last time I checked. Yes they did came late tot he game... but so did Apple, considering all the Blackberries, Palms, Symbians and Winphones present back in the days. Mind you, a lot of people thought that iPhone is destined for fail because of all that, and it is in human nature to make same mistakes over and over again.

Win tablets, I don't have high hopes for RT, but Win 8 Pro tablets? I'll honestly be surprised to see them fail. But we'll see.
post #14 of 28
Quote:
Originally Posted by Red Oak View Post

Spain.  The land of 25% unemployment.   No wonder free Android phones are all the rage.  I'm sure Google and Amazon will earn a lot of search and content revenue from this market  

And some people think that it's a brilliant idea for Apple to make phones for people with no jobs and no money. What great customers! What an awesome business strategy!1bugeye.gif

post #15 of 28
Quote:
Originally Posted by nikon133 View Post


I wouldn't say that PC market is failing. I'd be surprised to hear that number of PCs in use is declining. That market share did reach maturity and people don't have reason to buy new PC as often as they did, but I expect PCs are here to stay.

Windows smartphone sales since it's fresh start are growing faster than iPhone and Android did in same timeframe since introduction, last time I checked. Yes they did came late tot he game... but so did Apple, considering all the Blackberries, Palms, Symbians and Winphones present back in the days. Mind you, a lot of people thought that iPhone is destined for fail because of all that, and it is in human nature to make same mistakes over and over again.

Win tablets, I don't have high hopes for RT, but Win 8 Pro tablets? I'll honestly be surprised to see them fail. But we'll see.

 

 

Windows phone share trend in the US over the last 5 years has declined  

 

RT is already dead.  Pro is on the margin    

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post #16 of 28
Quote:
Originally Posted by Red Oak View Post

Spain.  The land of 25% unemployment.   No wonder free Android phones are all the rage.  I'm sure Google and Amazon will earn a lot of search and content revenue from this market  

Read dreyfus2's post. Telefonica's O2 is a European telecom company. Spain is irrelevant.

I'm switching from O2 with the new iPhone. Their cynical (but arguably, spot on) tariffs where you now get pretty-much flat rate minutes and texts with differing levels of egregious data fees are ridiculous.

They're kinda on-the-ball in many respects, and they're after what they think will benefit them the most. It just isn't what would benefit me as a consumer. It doesn't benefit me to limit my mobile usage so I don't use FaceTime or YouTube. And it doesn't benefit anyone to have a Windows Mobile [sic] phone.

Short-term, they and their shareholders think it'll benefit them to bet on as many horses as they can, in case one platform gives them the control and power they want.

Still, this is a shitty move.
post #17 of 28

"The Microsoft business culture is based on a model of value creation through its partners associates..."

 

What the hell did it just say there?!! The Microsoft business culture is based on shoving Windows down everyone's throat whether they want it or not. 

 

Whatever is best for Microsoft is their business culture. It worked when IBM was the Hardware vendor of choice, but since IBM got out of the PC business, it's been up to Microsoft to pick up the slack and it's not been pretty. 

 

One thing will come of this one-year push and that is it will become readily apparent whether Windows on your phone and tablet is a world-wide turn-off or not.

post #18 of 28

Telef?nica?? Nice move, Appl?Insid?r. 1smile.gif

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post #19 of 28

Shake up that duopoly!

Oh wait, Microsoft wants in on the duopoly. It wishes it was THE alternative to iOS.

"Apple should pull the plug on the iPhone."

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post #20 of 28

Quote:

Originally Posted by nikon133 View Post


I wouldn't say that PC market is failing. I'd be surprised to hear that number of PCs in use is declining. That market share did reach maturity and people don't have reason to buy new PC as often as they did, but I expect PCs are here to stay.

Windows smartphone sales since it's fresh start are growing faster than iPhone and Android did in same timeframe since introduction, last time I checked. Yes they did came late tot he game... but so did Apple, considering all the Blackberries, Palms, Symbians and Winphones present back in the days. Mind you, a lot of people thought that iPhone is destined for fail because of all that, and it is in human nature to make same mistakes over and over again.

Win tablets, I don't have high hopes for RT, but Win 8 Pro tablets? I'll honestly be surprised to see them fail. But we'll see.

 

+2

 

Quote:

Originally Posted by Red Oak View Post

 

Windows phone share trend in the US over the last 5 years has declined  

 

RT is already dead.  Pro is on the margin    


-1

Somewhat invalid comparison.  However, MS deserved to lose the share it did pre-Win Phone 8 with twists and turns that alienated many while iPhone was skyrocketing and bringing Android along in its slip stream.  I say deserved because WP 8 completely superceded Win Phone 7 with no upgrade path - which Win Phone 7 had already done to the 10 or so years of awful Win Phones that preceded it. 

Meanwhile, WP 8 IS 1) the MS platform going forward, 2) is only a year old, 3) is the first version to have meaningful synergies with Windows as a platform, 4) Win 8.1 ("Blue") promises to fix much that was botched in the first release (and how many of you would like to go back to OS X 1.0??  Tiger [10.4] was the first to actually get most of the potential of its time right), 5) Blue will do much to integrate an emerging ecosystem - more curated than Android's and more open than Apple's - so possibly a viable model - between all Win 8 devices and X-Box.  And PS: I actually like a fair number of things about its approach to tying one's digital life together. 

And 6) MS has a history of botching first releases, e.g., Win 3.0 is long gone and unlamented, but 3.1 and 3.11 hung around for a long time, while XP/Service Pack 3 still has 40% of the Win devices in service share.  Plus 7) they still have deep pockets, a huge share in the Fortune 1000 (and in many countries), loyalty from (or at least more operational familiarity with) many IT Departments, etc.

Way too early to forecast 2017 and beyond shares, but the 2013-18 five year market share trends should indicate the real state of things as platforms mature. (And as new disruptive developments throw much of it into a cocked hat, whoever comes up with them.)  

And it'll be interesting to compare Blue and iOS 7 phones, since both are major iterations on their own, with both linked to new iterations of their PC OS's and of their cloud strategies..

So too soon to write MS off (even much currently maligned RT), however big a jerk Ballmer is, and notwithstanding the utter uneveness or their marketing and advertising campaigns. 

The whole smart pocketable/wearable etc. markets, the slate/tablet/hybrid markets and the ongoing role of notebooks and desktops are in major flux at all the major players. Everyone's in rapid transitions.

Meanwhile, other questions abound.  Who's going to "own the living room" (if anyone)? Will Chrome finally make the old "thin client" paradigm - that's been tried multiple times - truly viable?  Will Google really embrace the notion of Android as yet another PC OS?? Will Apple ever adopt touch across its lines?  If they don't and 8.1 and beyond become actually popular, has dual booting or virtualizing via VM Ware ever been an important selling point for Apple?  (It is to me, e.g.)

Does what's going on with Glass matter to Apple (or MS) long-term?  Can anyone besides Apple (if they go forward with one) actually popularize a smart watch to mass market levels or will they go the way of the Casio calculator watches of the '80s? 

Do AI readers really understand how much more friendly the relationship between Apple and MS has become - that they've actually been more "co-opetitioners" rather than direct competitors for the last five or more years as both square off against Google? 

Do those who want to "keep all MS crapware" off their Apple gear know about the built-in Exchange hooks on Apple devices?  And Apple recently adopting a fairly deep MS hook called, I believe, SMB in their OS?  And why Apple chose Bing as Siri's default search engine?  Or about the contribution that sales of MS apps on Apple devices makes to MS' bottom line?  The seamlessness of how Bonjour works to allow Win and OS X devices to work together?

There's a lot of fanboy repetition of talking points going back to the '80's whenever anything about MS is published here and it's not only stale, but sadly ignores the landscape as it is today.  A really interesting landscape that's morphing almost daily....

...I've never been more confused by all the choices out there, and it's a lot to wade through, but I really like it this way.


Edited by bigpics - 6/27/13 at 11:33pm

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post #21 of 28
Quote:
Originally Posted by Red Oak View Post

Spain.  The land of 25% unemployment.   No wonder free Android phones are all the rage.  I'm sure Google and Amazon will earn a lot of search and content revenue from this market  

 

Why would you generalise an entire country just based on a single company? If you are trying to establish that Spain has a history of making bad decisions resulting in 25% unemployment and then inferring that this is nothing but the latest in a series of stupid decisions made (supposedly) in Spain, I think you are making too much of a generalisation.

post #22 of 28
Hmm. Telefonica is 51 billion euros in debt -- see http://www.bloomberg.com/news/2013-06-20/at-t-said-to-explore-deals-with-telefonica-eyeing-europe.html
They just sold their operation in Ireland.
post #23 of 28
Quote:
Originally Posted by bigpics View Post

Do those who want to "keep all MS crapware" off their Apple gear know about the built-in Exchange hooks on Apple devices?  And Apple recently adopting a fairly deep MS hook called, I believe, SMB in their OS?  And why Apple chose Bing as Siri's default search engine?  Or about the contribution that sales of MS apps on Apple devices makes to MS' bottom line?  The seamlessness of how Bonjour works to allow Win and OS X devices to work together?

Nothing you said is secret or news. Apple and Microsoft have broadly licensed patents to each other and Microsoft flew its flags at half-staff when Steve died.

My goal is to not buy Microsoft products, (i.e., SKUs), when given a choice. Bill Gates used to tell people Microsoft wasn't a monopoly because people CHOSE Microsoft products. So I am exercising my choice to pick non-Microsoft products. OTOH, if Microsoft licenses code or patents to other companies, you can't use that to gloat about "fanboy hypocrisy" because I had nothing to do with licensing agreements between companies. Microsoft has a number of standards essential patents out there that are unavoidable. Yes, I acknowledge Microsoft ships lots and lots of software and is a major supplier of technology. Their influence is immense. But I won't choose Windows 8, Xbox, Surface, or Windows Phone. I don't have to LIKE them, despite their long history and relationship with Apple.

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post #24 of 28

The very idea of any telecom deciding what the buyer will choose doesn't smack of smart or possible today. Not everyone is a tech guy so one talks to friends, relatives, tries out models, makes final decisions by what s/he can afford; especially in these days of tight money. A phone should easily last three years. Used just for talking and text, there is the feature phone for the cash strapped and of other interests. For those who use more of the services provide by a smart phone, the choice then becomes obvious: from the land of edible and healthy, rather than the copied or desperate, those who think will choose.

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post #25 of 28
Quote:
Originally Posted by AppleInsider View Post

In a statement, Telef?nica's chief operating officer Jos? Maria ?lvarez Pallete said that Microsoft's willingness to partner with carriers was a chief reason behind the decision.

 

In other words, Microsoft's willingness to pay for promotion.

 

Quote:

Apple famously has been unwilling to let carriers preinstall software on its iPhone, something that Microsoft may be more willing to do in order to grow market share for Windows Phone 8.

 

Apple was, however, famously willing to let carriers... especially AT&T... "suggest" that certain apps be restricted to WiFi, in order to keep their 3G network from being overwhelmed.

 

Quote:
Currently, Windows Phone 8 sits in a distant third place in the smartphone OS race, with just seven percent of shipped devices in the first quarter of this year.

 

Perhaps Microsoft should've kept Windows Mobile / CE going as well.  It was used a lot in some countries, and in many places stayed above Windows Phone in popularity long after WinMo itself was dropped.

post #26 of 28
It seems that in hast to bash MS (as BicPics eloquently stated), many poster's seem to forget or not realize:

a) Nokia... while not big in the states has a lot of loyalty in Europe, Africa and elsewhere;
b) the Nokia 928 is a pretty decent phone, with what many consider to be the best camera and optics on any mobile device.
c) Windows Phone 8 is quite a bit better than Android 4.2.2 ... and a very pleasant UX rivaling only an iPhone 5.... no Galaxy, HTC or Sony devices need compete here.

I can live with Win 7 or 8 if I have to, but I choose not to. For those that use Windows as their primary OS, there really is a lot to like purchasing a Windows phone to sync with it.

MS has a way... maybe even a long way... to go; but I wouldn't count them out of the game just yet. Also remember that it was first with XP, that they really did things right and got everyday consumers to buy and use home computers. Up to that point it was mostly tech geeks and business.

I expect Win9 to be the MS OS to watch out for if they stay concentrated on their efforts, starting with not giving into the loud-mouth geeks about Win8.

At which time: Microsoft needs to find their "Ball" and to fire the entire marketing department, their ad agency (agencies?)... and get a kind of "Style Commissioner" in-house. Maybe even move the entire operation to CA, FL, or NY. Seattle is NOT cutting edge anymore, ever since the Grunge movement.... well... moved on.
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post #27 of 28

It's pathetic to read about a company weeping on behalf of poor M$ facing a "duopoly"! I wonder if it feels the same way on the Windows monopoly?

post #28 of 28

I will say if the iPhone didn't exist, the Lumia 920 is the phone I'd want. It's a gorgeous piece of kit. Feels great in the hand and Windows Phone 8 is a leap and bound above Android.

 

That said, the iPhone does indeed exist. So I'll never have a reason for it. 

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