It has been an eventful week for Microsoft. The consecutive developments seem to point to the death of the company's mobile division. The release of Windows 10, however, may turn the tables around. And it appears that there are still plans of releasing new models.
Yesterday, reports indicate that the tech giant has decided that it will launch only a maximum of six smartphone models per year. There will be one to two per category: the business segment, the high-end or flagship segment, and the affordable segment.
Two days ago, on Wednesday, July 8, Microsoft's chief executive Satya Nadella has spoken about the losses brought by the acquisition of mobile company Nokia. Nadella has written off the $ 7.6 billion dollar deal, with interest. The whole deal has cost $8.4 billion.
Nokia and Microsoft have been partners for just a little over fifteen months. Nokia's flagship, Lumia, is among the first among its models to be powered by Windows.
On Tuesday, the software company has announced a massive laying off of 7,800 people from the Microsoft work force. Majority of the positions will be coming from the mobile phone division.
Kevin Turner, Microsoft CEO, said on Wednesday, "Going forward, we will focus on building the very best Windows phones on a quicker timeline. We will also focus on the channels and markets that offer the best returns."
The massive layoff, reports say, will largely affect the company's employees in Finland, where Nokia is based. Rumors also say that Microsoft will be closing off its phone divisions in countries, such as China and Taiwan, where they have not been successful.
Microsoft has not enjoyed good sales figures as it forayed into the smartphone business. Watchers say it's only a matter of time before Microsoft phases out its mobile units. Optimistic supporters say the release of Windows 10 at the end of the month may save the company's line of mobile phones.
Will future developments point to a restructured Microsoft mobile business? Or will it spell death to the company's phones?
