Cheap Windows Smartphone: Companies that offer smartphones, such as Microsoft Corporation (NASDAQ:MSFT), are always looking into new markets. This definitely holds true with Microsoft right now.
In what some would consider a surprise, the company is looking to solidify itself in the African market by offering a low-cost Windows smartphone.
There has been a lot of talk lately about companies spending time and money in China, such as Apple Inc. (NASDAQ:AAPL), but Africa is a market that is often times overlooked.
A recent article in The New York Times discusses this strategy in great detail. At this time, it appears that Microsoft Corporation (NASDAQ:MSFT) will be teaming up with Huawei of China to sell the phone.
Here is some interesting information from the article:
“The phone, called the Huawei 4Afrika Windows Phone, will cost $150 and initially be sold in seven countries. Microsoft’s Windows Phone software is fourth among smartphone operating systems, with just 2 percent of the worldwide market in September, according to Canalys, a research firm in Reading, England.”
Although Windows Phone software is fourth among smartphone operating systems in terms of worldwide market share, it is a move like this that could quickly help the company take a step towards the top.
Pete Cunningham, an analyst at Canalys, was quoted in the article as follows:
“Microsoft is a small player in smartphones and it needs as many partners as it can get. And Africa is one of Huawei’s strongest markets outside of China.”
As you can see, it is obvious to most that Microsoft Corporation (NASDAQ:MSFT) is struggling to keep up with the top players in the industry such as Apple Inc. (NASDAQ:AAPL). That being said, it is partnerships like this that can help the company grow its market share.
For many, the question remains: why would Microsoft Corporation (NASDAQ:MSFT) want to get involved with the African market? Many don’t understand the following information and stats from the same New York Times article:
“Africa is the world’s fastest-growing region for smartphones, with an average sales growth of 43 percent a year since 2000, according to the GSM Association, an industry trade group based in London.”
“In sub-Saharan Africa alone, 10 percent of the 445 million cellphone users have smartphones, but that is expected to increase rapidly as operators expand high-speed networks.”
“By 2017, most consumers in South Africa will be using smartphones, up from 20 percent last year, according to the GSM Association. In Nigeria, the continent’s most populous country, the outlook for sustained growth is even greater, with smartphone penetration projected to reach just 30 percent by 2017.”
What are your thoughts on Microsoft Corporation (NASDAQ:MSFT)’s foray into the African smartphone market?
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DISCLOSURE: I have no positions in any stock mentioned.
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