Windows Phone 7 initial sales estimates underwhelming

By on November 10, 2010, 7:27 AM
Phone manufacturers officially begun selling Windows Phone 7 devices in the U.S. this week, less than a year since Microsoft revealed the ground-up redesign of its platform and started pushing the idea of a simpler mobile experience. But perhaps Redmond’s odd marketing campaign didn’t resonate well with consumers, or the many handset models scrabbling for attention only helped to confuse would-be buyers, as initial sales estimates are not looking pretty.

According to a market research source talking to financial site The Street, Microsoft may have sold as little as 40,000 phones. To put that number into perspective, Apple had some 600,000 pre-orders for the iPhone 4, and is reportedly selling around 270,000 a day. Meanwhile, Google activates some 200,000 Android handsets daily. We’re not sure how many Windows Phone 7 handsets were available to begin with – the HTC HD7 reportedly sold out amid “strong interest”, and the Venue Pro was only available in limited numbers – but 40,000 seems quite low nevertheless.


It’s far too early to forecast another “Kin” failure, though. Microsoft generally gets into new markets for the long run and is prepared to burn a lot of cash to position itself in the market – it persevered with the now profitable Xbox, and less successfully with other ventures such as Zune and Bing. With Apple and Google raking in billions from their mobile platforms, we’ll likely see Microsoft sticking around for the fight. It might just take some time to shake off the Windows Mobile stigma.




User Comments: 46

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taea00 said:

I think half the problem is Microsoft isn't really known for cutting edge. Whenever people hear Microsoft they think of "that thing that runs on my computer that I don't know what it does." Google and Apple have a better image though. People even use Google as a verb. I think Microsoft has more of an image problem than anything else.

I'm still waiting to see a commercial though that shows exactly what the Windows Phone 7 does. All I've seen are random commercials with people falling down and then it said Windows Phone 7. So when I buy your phone it'll make me clumsy? Ya I don't think I want that phone either.

Regenweald said:

Underwhelming sales do not change the fact that WP7 is a superior platform, it will take some time, but the market swing will happen.

aalsheh said:

I don't know if it's a superior platform, but maybe easier to develop for (to me at least)

Ranger12 Ranger12 said:

taea00 said:

All I've seen are random commercials with people falling down and then it said Windows Phone 7. So when I buy your phone it'll make me clumsy? Ya I don't think I want that phone either.

haha yeah i agree its largely an image problem. I find that most of the people I know who have an iphone or who buy apple products in general dont know much of anything about computers or phones. They just think theyre cool and that somehow means theyre better. Whatevs I dont get into that mess. When it comes down to it apple has done a good job marketing recently and microsoft hasnt done anything to help their waning image.

Guest said:

agreed

imo, its more business oriented then the competitors (Android/iPhone)

it will take time to get ppl to use it

Guest said:

Beta was superior to VHS but it lost too...

But agree, too early tell call it a dud yet.

A advertising campaign tweak, see how word of mouth, etc.

Demons said:

I don't know that I agree with it being a superior platform either. Apple and Googles platforms are pretty impressive. But I also think that it is too early to say if it will catch on. Some people, me included, still have a pretty bad opinion of the previous windows phones that make me very hesitant to jump into this one. I'll wait for a couple revisions and full reviews before I make any decisions to change.

Guest said:

I am seriously looking at the windows phone 7. None of the android phones appeal to me, the only one I like is the my touch slide and that's not on my network. All the different Android phones aren't compatible with the same apps. M$ is taking a stance kinda like apple, everything has to conform to a certain standard. The difference being that M$ is letting people make there own windows phone if it meets these standards. The android phones also come with a lot of bloatware that can sometimes be impossible to remove. M$ has already said that they will not accept bloatware on their phones, and that is a damn good idea. I currently have a blackberry and don't like it that much. All the different android versions makes buying apps useless and the iPhone makes me want fight someone...

Arris Arris said:

I'm going to wait and see what they update support is like. My HTC Touch HD "windows update" stopped working after a few minor updates. HTC didn't support updating from 6.1 to 6.5. Not going to get stuck with a buggy outdated interface again, will take a lot to get me to go with a Windows based phone again.

bam13 said:

This came way too late, in the best possible scenario itÂ'll take few years for windows to catch up on Apple and Android

Wagan8r Wagan8r said:

I think it will just take some time to mature in the market. Most people probably don't know what it's all about. We here are more tech oriented people, so we eat it all up and have made up our minds on whether we want it or not. I'm going to get one (just need some more monies!), but the majority of people haven't seen all of the videos or know which handset is the best. Microsoft needs to have commercials that show HOW you will be less glued to your phone rather than just telling you.

9Nails, TechSpot Paladin, said:

I've been hearing that stores are sold out on the phone. [link] So I don't know what to make of this. Possibly low or unanticipated supplies not meeting demand? But I also think releasing the phone on AT&T's network doesn't help. I too noticed that the demand was from T-Mobile's stores, backing up what I suspect. The iPhone largely dominates all Smart Phones on AT&T's network. And to put a new, yet unknown phone against the well established and raved about iPhone won't help sales.

Microsoft made a mistake in positioning this new phone against iPhone. And should have put out a CDMA version for Verizon to get that initial interest if that is what they're after.

ET3D, TechSpot Paladin, said:

I think part of the problem is the previous Windows Mobile versions. I owned two Windows Mobile phones (2003 and 6.0 versions), and still use the latter. They have quite a few annoying things and I vowed never to buy another Windows phone. While I read a review and it looks like the new Windows Phone OS and UI is quite an improvement, and something that's actually enjoyable to use, I still would look at other phones first when it I decide to buy a new phone.

Guest said:

@taea00: It's competitors' phones in the ads, so the message is when you buy THEIR phones you'll be clumsy.

Jibberish18 said:

For one you can't compare WinPhone7 to an iPhone 4 or to a Million & 1 Android Handsets because it's a new operating system that JUST came out. For two, people still have a VERY bad taste in their mouth from WinMo 5 & 6 so once they hear the words "Phone" and "Windows" in the same sentence, they run for dear life. It'll get better I think.

TomSEA TomSEA, TechSpot Chancellor, said:

How about maybe the phone market is already saturated and MS waited 10 years too long to jump in?

Regenweald said:

The 'smartphone' market has been here what ? 2, 3 years now ? and people are talking SATURATED ? Companies like Intel and AMD are just NOW beginning to design with this form factor and type of device in mind but Microsoft is late ? well ok, everyone has their opinion.

What I see is a brand new platform, already rivaling the functionality of existing and established platforms. WP7 has: Zune multimedia functionality, Xbox Live integration, full Windows integration and mature and established development tools. In 2 years I think WP7, Meego and WebOS will be major players.

TomSEA TomSEA, TechSpot Chancellor, said:

"To put that number into perspective, Apple had some 600,000 pre-orders for the iPhone 4, and is reportedly selling around 270,000 a day. Meanwhile, Google activates some 200,000 Android handsets daily."

If that's not a saturated market, I don't know what is.

Razerblade said:

I think one of their main problems is that people do not trust Microsoft with mobiles as mobile 6.5 and earlier were so awful! Also, everyone knows about Apple and Android so they go for the safe bet. Microsoft took way too long getting the new OS out as Android and Apple have got a strong foot hold now!

I must also say that their advertising campaign was terrible! I saw the advert and was totally put off, You only saw the interface of the phone at the very end. Never mind, I'm sure Microsoft will keep going, could be a long ride for them though!

zogo said:

Nonetheless, they cannot dominate everything on the market. It's already enough.

---agissi--- ---agissi---, TechSpot Paladin, said:

My initial thoughts are:

It doesnt look asthetically pleasing. The GUI and case equally dull, the phone doesnt look very savvy at a glance. And I like Microsoft but Im not a big fan of the Windows symbol right there on the phone..

Xero07 said:

How those first 40,000 perceive it will be a big factor. If they like it and make others want it, then Microsoft's market share will expand.

The advertising wasn't great, though i somewhat liked the concept itself there are better ways of promoting speed and simplicity.

spyx said:

This is pretty awesome I was thinking of buying one but I wanted to wait for trusted reviews, anyone on the forum/comments have anything to say?

It seems nice and all i dont have a iphone or a droid i have a (blackberry) so ? what do u guys think

?

Decimae said:

Guest said:

I am seriously looking at the windows phone 7. None of the android phones appeal to me, the only one I like is the my touch slide and that's not on my network.

If you're looking at the MyTouch slide, you might like the Motorola Droid 1 or 2, or the Desire Z, or even the sprint epic 4G.

All the different Android phones aren't compatible with the same apps.

Not true; the only thing that really matters is OS version(which most of the times can be upgraded; even the G1 can easily run Froyo), and resolution. WP will eventually have these problems as well, with new devices being introduced.

M$ is taking a stance kinda like apple, everything has to conform to a certain standard. The difference being that M$ is letting people make there own windows phone if it meets these standards.

Android(or at least the Google Apps for Android) did the same thing in 2008; now these standards are outdated.

The android phones also come with a lot of bloatware that can sometimes be impossible to remove.

If you'd root your phone, you'd be easily able to remove it, and almost all android phones are rootable.

M$ has already said that they will not accept bloatware on their phones, and that is a damn good idea.

How can you define the difference between bloatware and genuinly useful features like sense?

I currently have a blackberry and don't like it that much. All the different android versions makes buying apps useless

Why? Just plain why? Apps have support for multiple devices. You could put in this reason for selling apps, but not for buying. If you have eclair, you can get 95% of apps.

and the iPhone makes me want fight someone...

That, I don't understand either. I like the iPhone(though I would dual boot android and iOS), though I think android has a better value for price.(and an iPhone is too expensive for me).

UT66 said:

ms needs new and fresh ideas of their own. copy-paste was a good paradigm in 1981 (Apple Computer popularized that with the Lisa and Macintosh os)

lawfer, TechSpot Paladin, said:

I can't say I'm surprised. WP7 is not necessarily a failure, but it will definitely never be a success with Android and iOS on the market. And yes, I used the word never.

hassaan said:

To put it all in a nutshell; WP7 is late, has a bad history with previous mobile OS and that Android / iOS have already captured much of the market. But we can't discount WP7 just yet. So we'll have to wait to see how its evolves (or not)?

sMILEY4ever said:

They're a tad bit late.

KG363 KG363 said:

I really like winmo7. I hope it takes off. The more competition, the merrier

aj_the_kidd said:

lawfer said:

I can't say I'm surprised. WP7 is not necessarily a failure, but it will definitely never be a success with Android and iOS on the market. And yes, I used the word never.

I wouldnt say never, more its very very very unlikely.

One of the best things that Android had going for it was, it wasn't Apple, people wanted an iPhone alternative and the Android OS delivered just that. Windows 7 just doesnt have that edge that will make the masses migrate

gayfish said:

bill gates should do a ad for wp7.nevertheless i think it would be a huge success.

android.iphone have their fanboys. but till now windows mobile had only hateboys..

so would take time..

limpangel limpangel said:

I think sales are pretty low because:

1) Those who are considering buying a WP7 (or other smartphone) are waiting for the reviews.

2) Most of those who had smartphones already, upgraded this summer and had a lot to choose from. Why would they upgrade after just a few months.

3) The holidays season is near so they might plan to buy one then.

4) People need to see a WP7 commercial with the Old Spice guy in it

Archean Archean, TechSpot Paladin, said:

WP7 is a refreshing but 'incomplete' platform for now, they need to burn more cash + effort to 'complete' it for it to become competitive with the rest of the lot; I think it will take about 1-2 years period for them to do it. If they do it rightly, they may end up having the best user interface with the right feature set and most importantly the 'user experience'.

fritz123 said:

i think that the windows phone didnt just get enough attention. the buyers are exposed more on the existing systems like apple and android since they are a lot more publicized and a lot more reviewed. maybe its one effect of starting late in the race. windows is a good platform. it just needs to catch up a little more

ET3D, TechSpot Paladin, said:

TomSEA said:

"To put that number into perspective, Apple had some 600,000 pre-orders for the iPhone 4, and is reportedly selling around 270,000 a day. Meanwhile, Google activates some 200,000 Android handsets daily."

If that's not a saturated market, I don't know what is.

If that's saturated, what do you think about the PC market, which sold 306 million in 2009?

Puiu Puiu said:

The marketing is at fault here and also because of very few good phones being released and hose that are good have only a limited number in stock.

They were betting on the "7" naming scheme and they didn't really put enough effort.

lawfer, TechSpot Paladin, said:

aj_the_kidd said:

lawfer said:

I can't say I'm surprised. WP7 is not necessarily a failure, but it will definitely never be a success with Android and iOS on the market. And yes, I used the word never.

I wouldnt say never, more its very very very unlikely.

One of the best things that Android had going for it was, it wasn't Apple, people wanted an iPhone alternative and the Android OS delivered just that. Windows 7 just doesnt have that edge that will make the masses migrate

Huh?

You said its "very very very unlikely," but then you go ahead and pretty much explain the very reason why I used the word never.

lawfer, TechSpot Paladin, said:

ET3D said:

TomSEA said:

"To put that number into perspective, Apple had some 600,000 pre-orders for the iPhone 4, and is reportedly selling around 270,000 a day. Meanwhile, Google activates some 200,000 Android handsets daily."

If that's not a saturated market, I don't know what is.

If that's saturated, what do you think about the PC market, which sold 306 million in 2009?

Trying to compare both markets just nullifies any possible chance of argument.

You can't compare the mobile market with the PC market. I assure you the PC market doesn't sell 200,000 PCs every day. Not to mention, that in the long run, you actually end up paying even more than what a PC costs when you purchase a phone.

jazboy said:

Microsoft has to bring some special on Mobile OS otherwise it will be failure only.

spydercanopus spydercanopus said:

I bought a new phone three days ago. Checked out Win7 Phone, then touched the iPhone 4 and was BLOWN AWAY! There is no catching up to iPhone's speed, apps, etc. I'm freaking playing Final Fantasy 1 and 2, Resident Evil 4, and more. People are fed up with Windows Mobile and they have no chance to succeed.

spydercanopus spydercanopus said:

The only thing that made me even want to check out Win7 Phone was the "media stream" from WMP12. That is a cool feature I use on PS3.

However it wasn't enough to sell me on it. The iPhone 4 is ahead of it's time hardware wise. I have no more patience for Windows "Mobile" software.

foxrox foxrox said:

I think this is more a sign of a lousy economy than an underwhelming product. While I would love to have a Win7 phone, I don't have the discretionary funds to drop everything to run out and blow money on the neatest new electronic toy to hit the market.

How many iDrone customers are locked into a service agreement and cannot just arbitrarily decide to change everything because something different and better has been released?

Guest said:

Foxrox, sorry, but I can't agree with you. You come off as a little bitter.

The recently released Galaxy S phones sold 1 million in a span of a month in the US, so I can't buy into the bad economy excuse. WP7 despite being backed by huge advertising and marketing dollars sold lousy and is just not desirable to the general public. What's "different and better" for you in regards to WP7 is only a matter of opinion and apparently doesn't seem to carry over into the public based on the muted response for this phone.

Finally, you seem to live in some vacuum where there will not be any new android/RIM phones released in the near future or the iPhone 4 being released in early 2011 on Verizon that will take away from the already small attention WP7 is getting. Keep dreaming thinking that there are millions upon millions of already satisfied iPhone customers wetting in anticipation of jumping into WP7's near non existent unproven ecosystem once their contracts expire. If people are already satisfied and feel the system they're in is good enough, why jump to something else?

foxrox foxrox said:

Guest said:

Foxrox, sorry, but I can't agree with you. You come off as a little bitter.

The recently released Galaxy S phones sold 1 million in a span of a month in the US, so I can't buy into the bad economy excuse. WP7 despite being backed by huge advertising and marketing dollars sold lousy and is just not desirable to the general public. What's "different and better" for you in regards to WP7 is only a matter of opinion and apparently doesn't seem to carry over into the public based on the muted response for this phone.

Finally, you seem to live in some vacuum where there will not be any new android/RIM phones released in the near future or the iPhone 4 being released in early 2011 on Verizon that will take away from the already small attention WP7 is getting. Keep dreaming thinking that there are millions upon millions of already satisfied iPhone customers wetting in anticipation of jumping into WP7's near non existent unproven ecosystem once their contracts expire. If people are already satisfied and feel the system they're in is good enough, why jump to something else?

No, not bitter... better. I am a BlackBerry user. The iDrone is more of a toy and a status symbol than it is a serious productivity tool. And that's OK if you fit into that niche market. And, Android is pretty much a toy that works with more cellular providers for those that do not want to use AT&T services and/or don't want to own something with Apple's name on it.

What I was referring to is that not everyone has the financial ability to cancel a service agreement and pay early termination fees on a whim simply because a new piece of hardware has been released. A lot of new phone sales are undoubtably people that are able to buy new hardware and stay with the same service provider while their existing service agreement is still in force. If WP7 is only compatible with one cellular provider at launch, then it seems sort of natural that the response will be muted. If it could have been used with any cellular provider at the launch, the response probably would not be nearly as muted. [link]

I also don't expect Apple fanboys to jump on WP7 for the same reason diehard Microsoft fans wouldn't consider owning an iDrone.

But, I am very glad to hear that iDrone customers will soon have a choice besides AT&T. It's high time. Now all they need is an unlocked version that will work with Sprint or any other cellular provider they want to use. The proprietary gestapo garbage Apple is famous for is for the birds.

As WP7 is further perfected and launches with multiple cellular providers I think we will see it start to gain greater market share. The features WP7 offers (from what I am reading) may give business users a much more integrated and productive solution compared to the BlackBerry, which is currently the defacto standard in smartphones used for business. Here again, companies are not going to replace all of their deployed and functional BlackBerry phones with WP7 on a whim, but I would not be surprised to see WP7 devices begin to roll out as a replacement as the platform matures.

foxrox foxrox said:

aj_the_kidd said, "One of the best things that Android had going for it was, it wasn't Apple, people wanted an iPhone alternative and the Android OS delivered just that."

...true statement.

Arris Arris said:

The iPhone 4 is ahead of it's time hardware wise.

I disagree. The iPhone 4 hype is ahead of it's time. Only now is the iPhone with it's latest update actually superior in hardware to my HTC Touch HD handset which is almost 2 years old, and it's only a little bit better in spec.

- 5 megapixels

- Front camera with VGA resolution

Wow, stuff I've had in my HTC hand set for 2 years.

- 960x640 resolution

Finally beating my 2 year old handsets 800x480 that was far superior to the 480x320 of the iPhone 3 series.

And from what I understand the same Retina display is used in Samsung Galaxy series (I think it might even be a Samsung panel).

So you can get the same level of hardware in other devices, so can't really be ahead of it's time when others have the same hardware.

In my opinion the OS/UI and software is what sets it apart. If the latest Windows Phone OS had been out 2 years ago it might have had a better chance. But now they are only going to be stuck playing catchup.

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