Microsoft in Trouble
According to The Guardian’s report this month, Microsoft have already laid off 12,500 employees this past year as the tech giant is looking to make cuts from its smartphone business, which is rapidly losing money. Just this month, an additional 7,800 jobs were cut -around 7% of the company’s total workforce- as Microsoft estimates that it’s made a loss of $7.6bn on its Windows Phone.
In 2012, Microsoft bought former Finnish mobile communications behemoth Nokia for $7.3bn, although now some 2,300 of the new job cuts will now take place at Nokia headquarters. This disappointing news may not be a surprise to industry experts, however. The Windows Phone currently only makes up around 3% of the smartphone market, far behind its competitors Android (from Google) and the ubiquitous Apple iPhone, meaning that Microsoft will need to refocus its smartphone business if it wants to survive. Unfortunately, it has already had to write off more than the cost of its Nokia purchase, and news of new layoffs will hardly inspire confidence in the once mighty technology company.
Because the cuts are falling in Microsoft’s phone hardware business, the company is starting to move towards the software and cloud storage industries, pointing a new direction for the corporation’s future. However, this transition towards more modern cloud computing may not be enough to compensate for Microsoft’s dying Windows Phone business. Indeed, Stephen Elop, the former head of Nokia, joined Microsoft with the acquisition of his company as part of the takeover deal. It was decided last month that Elop should step down.
Making a Recovery
It’s not the end just yet, however. With 118,000 employees worldwide, Microsoft isn’t quite on its last legs. The undeniable star of the desktop computer age in the 1990s and early 2000s, Microsoft has massive resources, and it doesn’t look like it will be going under any time soon- it’s still a force to be reckoned with in the mobile devices market, even if the Windows Phone has failed to be a credible competitor to Apple and Google’s offerings. Microsoft is still going ahead with its Windows 10 launch, too, which will offer a powerful new platform for both home computers and a full range of mobile devices.
Since the takeover in February 2014 by new Microsoft CEO Satya Nadella, shares in the company have risen by around 22%, suggesting growing confidence by investors and the stock market in Microsoft’s ability to reinvent itself and weather the storm.
Benefits of the Latest Windows Phone
According to TechRadar, the Windows Phone is not without its fans. In fact, the Windows Phone is the fastest growing operating system in Europe, and the phones outsell Apple models in some developing nations. The Windows Phone offers “tiles” rather than the iPhone’s homescreen icons, and it offers a lot of customisable options, while the Action Centre brings the Windows Phone up to date with Android and Apple’s notification systems. Additionally, the technology utilised in the new Lumia phones mean anything but grainy or disappointing smartphone photos.
If you decide that the Windows Phone is indeed for you, then coupon and discount voucher sites such as couporando.co.uk or hotukdeals.com are a good way to get money off your purchase of your new smartphone.