Microsoft's "can't lose" mobile strategy

Microsoft’s deal with Nokia should increase the company's position in the smart phone operating system market. The number of smart phones now being sold with Windows Mobile or the newer Windows Phone 7 is pretty small, perhaps less than five percent of all sales, representing licensing fees of perhaps $10 to $15 license fee per phone. Some argue Microsoft can make more money by licensing other parts of its intellectual property portfolio.

Microsoft is now seeking to get royalties from all Android handsets sold It is quite likely that Microsoft will be able to extract licensing fees (eventually) from all the manufacturers. And at $5 per handset produced, that is a substantial revenue stream.

No disrespect, as a business model is a good thing to have. At the same time, in a market seemingly driven by the likes of Apple and Google, one has to ask the question: when was that last time Microsoft actually did something "enchanting" in the mobile market?

Microsoft's "can't lose" mobile strategy