Microsoft Corporation (MSFT), Nokia Corporation (ADR) (NOK): Why the Windows Phone Has a Bright Future

No doubt management is watching the internal launch numbers roll in and they can’t be pretty. Earlier this month the company announced that it was exploring its ‘strategic options’-industry code for sell out. As the last viable alternative to Android and iOS, Microsoft Corporation (NASDAQ:MSFT) is well positioned if BlackBerry Ltd (NASDAQ:BBRY) were to disappear.

Third, expect Chinese manufactures to drive Windows adoption going forward. Microsoft Corporation (NASDAQ:MSFT) already has relationships in place with Huawei and ZTE in mobile. Rumours are also circulating that Samsung might beef up its Windows offerings. These partners could give Microsoft the scale needed to challenge iOS’s and Android’s dominance.

The one risk that could sink Windows

But there is one problem which could reverse its momentum for the Windows Phone: developers just aren’t interested in it. The Windows Marketplace has about 100,000 apps and that figure hasn’t grown substantially through 2013.

In its most recent quarterly survey of its developers, Appcelerator pointed out that interest in building applications for Microsoft mobile products has declined since Windows 8 was released. Today, less than 40% of Appcelerator’s mobile developers are “very interested” in building for Windows. In comparison, 78% of developers are interested in building applications for Android and nearly 90% are eyeing the iPhone.

The Appcelerator report sums it up nicely.

“End users cite a lack of apps for Windows phones as the number one reason for non-adoption. In lockstep, many developers cite lack of engagement from Microsoft.”

It’s a bit of a Catch-22. Without widespread adoption developers aren’t interested in building applications for Windows. But without applications, Windows can’t gain market share.

Foolish bottom line

If Windows is to consolidate the bottom rung of the smartphone industry, a well-developed app ecosystem is essential. Investors will need to watch Microsoft’s efforts to build a developer community around the Windows Phone. Yet in spite of these risks, don’t count Microsoft out yet. Windows is gaining strength and its best days might be still ahead.

The article Why the Windows Phone Has a Bright Future originally appeared on Fool.com is written by Robert Baillieul.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.