developers have little interest in apps for nokia/microsoft platform€¦ · developers have little...

19
Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com INITIAL REPORT September 22, 2011 Companies: AAPL, DELL, GOOG, HEL:NOK1V/NOK, HPQ, MMI, MSFT, S, T, TSE:RIM/RIMM, VZ 1 Reverdy Johnson, [email protected], 415.364.3782 Summary of Findings Eleven of 14 developer sources were not interested in creating apps for Nokia Corp.‘s (HEL:NOK1V/NOK) smartphones using Microsoft Corp.‘s (MSFT) Windows 7 Operating System. Sources said the new platform carries too much risk and that they have plenty of development demand from stalwarts Apple Inc. (AAPL) for iOS and Google Inc. (GOOG) for Android. Microsoft‘s efforts to use money as a lure will not sway enough developers, who want to be sure the OS and the phones will succeed before they devote time to app development. The development community‘s lack of overall enthusiasm will result in unmet demand from consumers, who now expect access to tens of thousands of apps for their smartphones. Five developers said the new platform could resonate in the enterprise community and threaten Research In Motion Ltd. (TSE:RIM/RIMM). Still, no source had yet been asked to create a business-to-business or productivity app, nor did any express an interest in doing so proactively. Game developers also have no interest in this new platform. Two sources said the market is ripe for a Windows tablet. Mobile industry specialists believe Deutsche Telekom AG‘s (DTE) T- Mobile is the most logical carrier to have interest in the new phones, but one source also said AT&T Inc. (T) may support the platform to distance itself from Sprint Nextel Corp. (S) and Verizon Communications Inc. (VZ). Sources had mainly positive comments about the Windows 7 Mobile OS; several even said they liked it better than Android. One source reported hearing buzz about Microsoft‘s upcoming Mango OS and that developers are excited to build apps for Nokia Windows phones, especially as an alternative to Android for which only free apps have thrived. NOK/MSFT Platform Apps Will Attract Developers Developers Will Leave iOS, Android for NOK/MSFT Platform Phone Volumes for NOK/MSFT Platform Will Be High App Developers Industry Specialists Research Question: Will developers build apps for the Nokia/Microsoft platform? Silo Summaries 1) APP DEVELOPERS 11 of 14 sources are not interested in developing apps for the Nokia/Microsoft platform. Apps for Apple‘s iOS and Google‘s Android are in such demand that developers do not have time to devote to a third platform, especially one that carries as much risk as Microsoft‘s. Microsoft is offering payment, waving fees and giving phones to developers, but that is still not expected to sway enough developers. They want to see whether the new platform and partnership will work before devoting time and energy to it, especially if doing so takes time away from iOS and Android. Microsoft‘s OS has the potential to establish itself in the enterprise world and become a threat to RIM, but is not expected to hurt iPhones or Android phones. Sources who create business and productivity apps have not seen any interest from their clients in developing an app for the new platform, and those developing gaming apps have no interest in Windows. Two sources believe the market is ripe for a Windows tablet because of its potential in the business world. 2) INDUSTRY SPECIALISTS Two of four sources said developers will not rush to work on apps for the Microsoft/Nokia platform, especially in the United States where it has such small market share. More likely, Microsoft will develop apps in-house and become an enterprise device that serves as a nail in the coffin for RIM. One source has heard enthusiasm from developers eager to leave Android because the platform‘s most popular apps are free. T-Mobile is the most likely carrier to initially support the new partnership because of its lack of iPhone, but one source believes AT&T could make a play for it as a differentiator from Verizon and Sprint now that those carriers have the iPhone. Sources expect Microsoft to use its wealth to attract developers and carriers.

Upload: others

Post on 22-May-2020

16 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Developers Have Little Interest in Apps for Nokia/Microsoft Platform

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

INITIAL REPORT

September 22, 2011 Companies: AAPL, DELL, GOOG, HEL:NOK1V/NOK, HPQ, MMI, MSFT, S, T, TSE:RIM/RIMM, VZ

1

Reverdy Johnson, [email protected], 415.364.3782

Summary of Findings

Eleven of 14 developer sources were not interested in creating apps

for Nokia Corp.‘s (HEL:NOK1V/NOK) smartphones using Microsoft

Corp.‘s (MSFT) Windows 7 Operating System. Sources said the new

platform carries too much risk and that they have plenty of

development demand from stalwarts Apple Inc. (AAPL) for iOS and

Google Inc. (GOOG) for Android.

Microsoft‘s efforts to use money as a lure will not sway enough

developers, who want to be sure the OS and the phones will succeed

before they devote time to app development. The development

community‘s lack of overall enthusiasm will result in unmet demand

from consumers, who now expect access to tens of thousands of

apps for their smartphones.

Five developers said the new platform could resonate in the

enterprise community and threaten Research In Motion Ltd.

(TSE:RIM/RIMM). Still, no source had yet been asked to create a

business-to-business or productivity app, nor did any express an

interest in doing so proactively. Game developers also have no

interest in this new platform. Two sources said the market is ripe for

a Windows tablet.

Mobile industry specialists believe Deutsche Telekom AG‘s (DTE) T-

Mobile is the most logical carrier to have interest in the new phones,

but one source also said AT&T Inc. (T) may support the platform to

distance itself from Sprint Nextel Corp. (S) and Verizon

Communications Inc. (VZ).

Sources had mainly positive comments about the Windows 7 Mobile

OS; several even said they liked it better than Android. One source

reported hearing buzz about Microsoft‘s upcoming Mango OS and

that developers are excited to build apps for Nokia Windows phones,

especially as an alternative to Android for which only free apps have

thrived.

NOK/MSFT

Platform Apps

Will Attract

Developers

Developers Will

Leave iOS,

Android for

NOK/MSFT

Platform

Phone Volumes

for NOK/MSFT

Platform Will

Be High

App Developers

Industry

Specialists

Research Question:

Will developers build apps for the Nokia/Microsoft platform?

Silo Summaries

1) APP DEVELOPERS 11 of 14 sources are not interested in

developing apps for the Nokia/Microsoft

platform. Apps for Apple‘s iOS and Google‘s

Android are in such demand that developers do

not have time to devote to a third platform,

especially one that carries as much risk as

Microsoft‘s. Microsoft is offering payment,

waving fees and giving phones to developers,

but that is still not expected to sway enough

developers. They want to see whether the new

platform and partnership will work before

devoting time and energy to it, especially if

doing so takes time away from iOS and

Android. Microsoft‘s OS has the potential to

establish itself in the enterprise world and

become a threat to RIM, but is not expected to

hurt iPhones or Android phones. Sources who

create business and productivity apps have not

seen any interest from their clients in

developing an app for the new platform, and

those developing gaming apps have no interest

in Windows. Two sources believe the market is

ripe for a Windows tablet because of its

potential in the business world.

2) INDUSTRY SPECIALISTS Two of four sources said developers will not

rush to work on apps for the Microsoft/Nokia

platform, especially in the United States where

it has such small market share. More likely,

Microsoft will develop apps in-house and

become an enterprise device that serves as a

nail in the coffin for RIM. One source has heard

enthusiasm from developers eager to leave

Android because the platform‘s most popular

apps are free. T-Mobile is the most likely carrier

to initially support the new partnership because

of its lack of iPhone, but one source believes

AT&T could make a play for it as a differentiator

from Verizon and Sprint now that those carriers

have the iPhone. Sources expect Microsoft to

use its wealth to attract developers and

carriers.

Page 2: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

2

Background

The current leaders in the cell phone apps wars are Google‘s Android and Apple‘s iOS. Developers create apps for these

operating systems, knowing they will garner attention because both companies have so much momentum. In order for the

Nokia/Microsoft partnership to create a viable, competitive third platform, the two companies will need to offer tens of

thousands of available apps. Right now, Microsoft has a war chest that would allow it to pay app developers, but developers

need assurance that their efforts will be met with sufficient user interest. Carriers have to commit as well, and phone volumes

must be sufficient.

CURRENT RESEARCH This report aims to determine the popularity of the Nokia/Microsoft platform and the prospects for developers to build

applications for this new venture. Blueshift employed its pattern mining approach to interview sources in three independent

silos:

1) App developers (14)

2) Industry specialists (4)

3) Secondary sources (4)

Blueshift interviewed 18 primary sources, including 10 repeat sources, and included four of the most relevant secondary

sources focused on Nokia and Windows phones losing share in Europe, Windows 7 making inroads with independent app

developers, and information and reviews of the Microsoft‘s upcoming Mango OS.

Silos

1) APP DEVELOPERS Eleven of 14 sources are not interested in developing apps for the Nokia/Microsoft platform. Apps for Apple‘s iOS and

Google‘s Android are in such demand that developers do not have time to devote to a third platform, especially one that

carries as much risk as Microsoft‘s. Microsoft is offering payment, waving fees and giving phones to developers, but that is

still not expected to sway enough developers. They want to see whether the new platform and partnership will work before

devoting time and energy to it, especially if doing so takes time away from iOS and Android. Microsoft‘s OS has the potential

to establish itself in the enterprise world and become a threat to RIM, but is not expected to hurt iPhones or Android phones.

Sources who create business and productivity apps have not seen any interest from their clients in developing an app for the

new platform, and those developing gaming apps have no interest in Windows. Two sources believe the market is ripe for a

Windows tablet because of its potential in the business world.

Mobile app developer for a travel site; also has several apps in the Apple App

Store from his previous freelance work

This source does not believe developers will be enticed to build apps for the

Nokia/Microsoft platform as it represents too much of a gamble, especially

when iOS and Android platforms are much more of a sure thing. Enthusiasm for

the new platform is nonexistent, especially when compared with Android‘s

arrival two years ago. Three is a crowd, making the Nokia/Microsoft platform the

odd man out.

―My hunch is developers won‘t build apps for the Nokia/Microsoft

platform. Learning a new stack and new developer tools is hard, as is

learning new UI [user interface] paradigms. Doing good work on a new

platform just takes real effort. Right now, iOS and Android are more

than enough to keep busy in the short term while having fairly certain

long-term potential.‖

―Getting into a new platform means being comfortable with adoption,

swallowing comparatively small market share and gambling on the

My hunch is developers won‘t

build apps for the

Nokia/Microsoft platform. …

Doing good work on a new

platform just takes real effort.

Right now, iOS and Android are

more than enough to keep busy

in the short term while having

fairly certain long-term

potential.

Mobile App Developer for a Travel Site

Page 3: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

3

future. For me, neither Microsoft nor Nokia has established any credibility in modern mobile development—not

enough to make that gamble worthwhile.‖

―I‘m at a company where we‘re working on iOS and Android consumer products in parallel, and the thought of

adding another platform of such shaky credibility just seems a waste with so many bigger and current

opportunities already waiting.‖

―There‘s none of the gathering steam that presaged Android‘s ascendance, and it‘s not like the economics here

even suggest that‘s possible. Who‘s going to pay to license an OS when there‘s a perfectly mature—if kind of

ugly—option they can have for free?‖

―I‘ve yet to meet anyone here in San Francisco—early adopter land—who even has a Windows 7 phone.‖

Head of business development for the U.S. subsidiary of a Pacific Rim-based game company oriented toward migrating

existing content to mobile platforms; has co-developed three game products for mobile; repeat source

The source is not actively developing products for Windows 7 Mobile for a few reasons. Window‘s OS has limited market

share in North America and appears to be in a state of flux. Also, most of the Nokia handsets that are popular in Asia still

run on Nokia‘s Symbian OS.

―We were pursuing Symbian ports of our existing apps when Nokia

announced that it was abandoning that operating system. We might

still redevelop for Symbian simply because the native user base there

is still relatively large—especially in Asia, where our parent company

operates—and will be around for at least a few years.‖

―I think Windows Mobile 7 has fallen to 2% of the U.S. market. We are

happy to develop for iOS and Android, but spending the resources to

develop for Mobile 7 at this point is like developing for Palm. It‘s not

wasted effort, but the difficulty and expense of porting code to the

Windows environment is definitely not trivial and not really worth the

return on investment.‖

―Windows is not a game-heavy system, at least when it comes to

mobile. It‘s more on the BlackBerry side of the spectrum. We work with

games, which means iPhone and increasingly the Androids.‖

―Another problem is that Microsoft keeps revamping the entire model.

They are talking about abandoning the app store approach to focus on

integrated software, effectively bundling everything into the OS. That

may work for them but until it happens, it is hard to develop for. We just

don‘t know whether all that effort will be wasted in the post–app store world, or how the new version of the OS

will work, or anything really. And in this environment, that doesn‘t inspire us to spend the resources.‖

President of a Swedish iPhone and Mac software development firm; repeat source

Only the staunchest Microsoft supporters in the development community are likely to develop apps for a Microsoft/Nokia

platform. Windows 7 Mobile offers very little innovation as an OS and has not been connected to any interesting

hardware. A more natural partnership for Microsoft would be with RIM because both companies have a strong presence

with businesses.

―[Microsoft and Nokia] are really fighting an uphill battle. Most app developers will see little incentive to build

apps for a Windows phone at this point. The partnership between Nokia and Microsoft really feels like an act of

desperation, especially from Nokia‘s side. They‘ve spent so much money on R&D for their various operating

systems, which are all now headed to the dustbin.‖

―Nokia‘s OS strategy had serious flaws, and their product roadmap looked like a Jackson Pollock splatter

painting. It‘s hard to see how partnering with a company whose software is clearly losing the race will help

matters.‖

―The one area where Microsoft has shown some innovation in this race is the Windows phone UI [user

interface], which has some interesting features. But, really, it‘s all relative. Windows Mobile has been so terrible

for so long—basically looking like normal Windows after being put through a trash compactor—that even if they

had come up with something nearly identical to iOS, it would have seemed like an innovation.‖

―Windows Mobile really has very little going for it. It‘s tied to a few phones that are hardware-wise similar to

iPhone or any number of Android phones, so who really cares? At this point, it‘s really down to the hardcore

We are happy to develop for

iOS and Android, but spending

the resources to develop for

Mobile 7 at this point is like

developing for Palm. It‘s not

wasted effort, but the difficulty

and expense of porting code to

the Windows environment is

definitely not trivial and not

really worth the return on

investment.

Head of Business Development

Game Company

Page 4: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

4

Microsoft fan boys. Among their number are, of course, many .NET and Silverlight developers who want to go

mobile but cling slavishly to the languages and tools they‘re used to.‖

―So these guys with probably the least technical competence—any good programmer is competent in several

programming languages and environments, and usually enjoys learning new ones—and most questionable taste

are probably producing many of the first apps.‖

―If Microsoft were serious about mobile, they would try to partner with RIM in a meaningful way. Business

already loves both companies, and RIM‘s products work great with Exchange. If they really got together on the

technology, they could do so much more‖

CTO for a content management and community start-up; has developed several productivity/workflow tools for Web and

mobile environments and is a fairly recent Apple convert; repeat source

Windows Mobile 7 is not this source‘s market. She is eager to develop for

iPhone and Android, but said the Windows platform is not critical to her

demographic of students and young educators.

―Our users don‘t use Windows phones. They love Motorola [Mobility

Holdings Inc./MMI] phones and they are in love with the iPhone, as am

I after all this time resisting. Because of that, Windows hasn‘t been a

priority for me.‖

―We are just a start-up and a little on the shoestring side when it comes

to budgeting. Getting placement in the Apple store is crucial for us.

Having a presence in the Android market is pretty mandatory.

Developing for Windows? Not so much.‖

―We work with kids and their teachers. That‘s why we don‘t develop for

BlackBerry, by the way. Our audience just doesn‘t use Windows

phones. Microsoft is probably lucky at this point if they use Windows at

all.‖

Software engineer and author of a book on usability and design

Developer interest in any platform outside of iOS and Android is minimal. This source expects Microsoft to pay developers

to build apps but does not believe that will make much difference. Windows 7 Mobile is a terrific OS, but this source

doubts the Nokia/Microsoft partnership will significantly affect the smartphone market, though it has a chance to sway

some Android users.

―Even the most obscure hardware platforms get some developer support. There are people writing games for the

OpenPandora, after all. But will Windows Phone 7 get support that is anywhere close to what the iPhone gets?

No. What I‘m hearing is that developers support iOS first, Android second, and a Web version third. There is

currently no interest in any of the other platforms. In fact, [Hewlett-Packard Co.‘s/HPQ] sudden abandonment of

its WebOS hardware development will make developers more reluctant to support minor players like WP7

[Windows Phone 7] or [Samsung Electronics Co. Ltd.‘s/SEO:005930] Bada.‖

―Microsoft will pay developers to create WP7 apps. I think they already do that. But I don‘t think it‘s a useful

strategy, because if you want to get the app-using phone audience, you

need the niche apps, and there are too many of them to get them by

paying. People can do without Angry Birds, but if they regularly use their

local bus and need a schedule on their phone, they will only buy a

phone that offers this app. If a doctor uses an app for differential

diagnosis on your phone, she won‘t buy one that doesn‘t offer this

app.‖

―You really can‘t pay yourself into an army of developers that support

your platform. You need to get one based on your platform‘s merits, not

based on the depth of your pockets. If there‘s no market for apps on a

platform, paying to get apps there won‘t do you any good.‖

―If Nokia were to sell a lot of WP7 phones, the situation would change

rapidly, of course. There are a lot of developers who have years of

experience with Microsoft‘s programming languages, APIs [application

programming interfaces], and IDEs [integrated design environments].

We are just a start-up and a

little on the shoestring side

when it comes to budgeting.

Getting placement in the Apple

store is crucial for us. Having a

presence in the Android market

is pretty mandatory. Developing

for Windows? Not so much.

CTO, Content Management &

Community Start-up

You really can‘t pay yourself

into an army of developers that

support your platform. You

need to get one based on your

platform‘s merits, not based on

the depth of your pockets. If

there‘s no market for apps on a

platform, paying to get apps

there won‘t do you any good.

Software Engineer & Author

Page 5: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

5

Developer support for WP7 could ramp up very quickly once developers see a market for their products. There‘s

no need to learn a somewhat obscure and outdated language like Objective-C [to develop for Windows].‖

―If companies suddenly decide to invest in WP7 apps, they will have access to a huge number of developers who

have the necessary skills.‖

―From a user experience perspective, WP7 is clearly the best mobile OS available, next to iOS. The visual design

makes the iPhone look garish and overdone, and it makes Android look like Windows 3.11. WP7 is beautiful,

feels fast and responsive, and the UX [user experience] makes complete sense for a mobile device. It‘s just a joy

to use.‖

―[the Nokia/Microsoft partnership] won‘t have a noticeable impact on iPhone sales, at least in the short term.

Most iPhone owners bought an iPhone because they want an iPhone specifically. Compare this to Android

owners: Many of them don‘t want an Android phone specifically and may not even know that their phone runs on

Android. In fact, they may have an Android phone with a custom, vendor-specific user interface that makes it

look and behave very differently from the standard Android version. These people wanted a smartphone, and

the salesperson sold them an Android phone.‖

―If Nokia were to incentivize salespeople to prefer selling Nokia‘s WP7 phones over Android phones, this could

have a huge impact on the market. It wouldn‘t have a big impact on iPhone sales, because most iPhone buyers

would insist on buying an iPhone despite what the salesperson recommended. In addition to the fact that

iPhone owners specifically want an iPhone, there‘s also some lock-in due to apps.‖

―Most users have only very few apps that they truly rely on. Unfortunately, every user has a different set of apps,

so hardware platforms still need thousands of different, specific apps in order to cover a reasonably large

segment of all potential users.‖

―I‘m guessing most people who buy Android phones don‘t buy them for the massive ecosystem of apps. The

Android Market is a mess, and as far as I know, most apps, especially for-pay apps, don‘t sell particularly well on

Android. So there‘s definitely a constituency that will buy a phone despite a lack of applications.‖

―As a first step, WP7 needs to reach these people and then build its audience from that. Is it possible? Yes. Will

it happen? There‘s a chance, but I‘m not overly optimistic, at least not in the short term. It really depends on how

much Microsoft is willing to invest and how well Nokia can still execute.‖

―Any [app] that people use on iPhones could succeed on a Nokia/Windows phone—apps that make sense on a

mobile system, like timetables for local public transport; distance trackers for runners; apps from social

networks, especially those with location support; GPS apps, language translators; photo sharing apps; task list

apps; vertical apps for doctors, lawyers, and similar markets; novelty apps; and, most of all, games.‖

Developer for a large social gaming company; has been part of three significant product launches and is working on

several additional projects for mobile and tablets; repeat source

The source was unaware of much native development for Windows 7 Mobile, at least in the gaming space. He

characterizes the process of porting existing content to Windows devices as fairly onerous for professional software

companies. Even for amateur developers, he sees little real ROI in building apps

in the Mobile 7 environment.

―I don‘t know of anyone actively working on Windows phones as an

active advocate of the operating system. People who crank out an app

now and then, for fun, hate Microsoft. It runs counter to the whole do-it-

yourself ethos of amateur app building. And the professionals have

their hands full with iPhone and Android platforms. I suspect there are

people out there who Windows is paying, but that‘s another story.‖

―We‘ve been slow to port our games to Windows Mobile, simply

because there hasn‘t been a real clamoring for it. Most of our Windows

audience comes to us from the Web environment and of course our

code is native to Internet Explorer as far as that goes, so for our

Windows users these ‗apps‘ work fine. Most of our Windows audience

does not have Windows phones. They have Apple phones or Android

phones.‖

―We ported one of our games to Windows Mobile simply because [the

game] was so successful that there was no sense in abandoning any

part of that huge audience. And we already had the code, so the cost of

I don‘t know of anyone actively

working on Windows phones as

an active advocate of the

operating system. People who

crank out an app now and

then, for fun, hate Microsoft. It

runs counter to the whole do-it-

yourself ethos of amateur app

building. And the professionals

have their hands full with

iPhone and Android platforms.

Developer

Large Social Gaming Company

Page 6: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

6

translating was a lot lower than it would have been to develop a new

app from scratch to live primarily in that environment.‖

―The Windows faithful have already transferred their loyalty to Android

as far as mobile goes. Android is the non-Apple, generic, somewhat

more buttoned-down alternative, which is to say it‘s in the same

ecological niche as Windows on the desktop. Instead of ‗I‘m a Mac, I‘m

a PC,‘ the mentality is ‗I‘m an iPhone, I‘m a Droid.‘‖

―Amateurs code for personal satisfaction or to get noticed. Some are

trying to get rich, but that quickly becomes secondary even for the

successful independent coders. Nobody will code on Windows for

personal satisfaction, and almost nobody thinks they‘ll get noticed if

they build a spectacular free Windows Mobile app. The exceptions are

those who actually want to get hired by Microsoft. There aren‘t many

people like that, at least in the gaming world.‖

―One thing Microsoft has going for it is a vast body of content already

on MSN.com. They have a lot of very simple but very engrossing games

there that run on APIs so they‘re already more or less native to a Windows Mobile environment, and they can be

easily ported over. And they have a built-in audience. It‘s not new development, but it‘s a way for them to

leverage their existing code base and get around the problem of motivating developers to create new apps.‖

―Nokia might well have a future in nonentertainment, serious productivity apps. They could become the new

BlackBerry if they can get the corporate accounts that BlackBerry had. Right now, corporate is Apple‘s to lose,

especially in the tablet format.‖

―I don‘t know about carrier demand for one operating system or another. I‘d look for someone who for whatever

reason has been squeezed out of both the iPhone and Android. The iPhone relationships are still a little

exclusive, but Android is everywhere by design. Nobody got squeezed out of the Android, so why would that

hypothetical carrier be hungry for Windows as a third option? Any motivation as far as that goes will have to

come from Microsoft or Nokia incentives, and even then, these phones won‘t be actively sold by the carriers or, I

suspect, actively bought by anybody.‖

Business development executive for a developer of custom mobile apps

Clients have not been interested in Microsoft‘s OS, and this source does not expect that to change with the Nokia

partnership. Paying developers is not likely to be a long-term solution. Microsoft‘s best bet for building momentum for

Windows phones is to develop its own features that attract a large user base, such as a connection to Xbox.

―We have the skills to develop for Windows Phone 7, but we don‘t

really do any development just for the sake of development. It‘s driven

by what customers want.‖

―We have one developer who is just a really amazing Windows guy from

the desktop side. He took a two-month sabbatical to write three

Windows 7 Mobile apps. He was real passionate about it and thought

he could be an early player there, but there wasn‘t much uptake.‖

―In the U.S., you just really have that dominance with Android and iOS.

Even with the third player now, BlackBerry, it‘s so hard to get our

clients interested. To have a fourth, I think is going to be a real

challenge.‖

―You probably need some progress on both ends [app development

and consumer sales] to get to a tipping point where it becomes a viable

ecosystem. I think that‘ll be difficult to do.‖

―I don‘t think [paying developers] will work. It‘s just a temporary stimulus. People will take the cash and make a

few apps, but at the end of the day, if they‘re not exposed to a wide user base and people don‘t adopt them,

then it‘s just going to a flounder.‖

―The best thing [Nokia and Microsoft] can do is find some real solution and engineer it. They have a pretty

extensive install base in the enterprise market, so if they could create some application that appeals to those

people, or something that really appeals to people on the consumer side, maybe a tie-in with Xbox, some killer

feature, that could help.‖

Nokia might well have a future

in nonentertainment, serious

productivity apps. They could

become the new BlackBerry if

they can get the corporate

accounts that BlackBerry had.

Right now, corporate is Apple‘s

to lose, especially in the tablet

format.

Developer

Large Social Gaming Company

We have the skills to develop

for Windows Phone 7, but we

don‘t really do any

development just for the sake

of development. It‘s driven by

what customers want.

Business Development Executive

Mobile App Developer

Page 7: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

7

―Not all features are created equal. If it‘s some suite of apps that plugs

into Xbox, which has a big fan base, I could see that doing well.‖

―I wouldn‘t be surprised if one or two of the carriers put out a

[Nokia/Microsoft] device just to test the waters, but I don‘t see it

taking off.‖

―I actually like [Windows 7 Mobile]. I really like the UI [user interface]. I

think Microsoft has a tendency to make some pretty nice UIs that are

underappreciated.‖

―I feel like [Windows 7 Mobile] is a more holistic approach than

Android. They really thought of what the user is going to go to the

phone to use, the way they‘ve integrated Facebook contacts into the

tiles and into the address book, for example. Whereas with Android,

some of the tablets are rather desolate. You have to thumb through all

these pages and figure out which tools are there, and it‘s often a

different experience from one manufacturer to the next. Two different

Android devices can have a very different experience.‖

Principal in a national B2B software development firm; primarily has developed intranet blogging and workflow apps for a

wide range of medical, corporate and nonprofit entities; projects are big and often require extensive coordination among

several programmers

The source has little interest in working with Windows 7 Mobile. He suspects the OS‘s niche market will keep most third-

party developers out of the space. However, Microsoft may simply step in to fill the gap. He is not optimistic about

Windows phones getting much active support from carriers.

―It‘s not something I have time for. They keep me very busy on Android and especially iPhone or iPad apps. I‘m

not an Apple snob, but this environment is the opposite of the desktop world 10 years ago, when the Windows

platform ruled the desktop and the Apple applications were an afterthought. Here, Windows is not even an

afterthought.

―I‘m sure there‘s a small and very vocal audience for these phones, much like the vocal Apple audience on

desktop 10 years ago. But I know none of the big phone companies around here have any time for the Windows

phones and Nokia is kind of a ghetto brand. There aren‘t any Nokia fans. Microsoft will probably just port

desktop apps to serve the diehard Windows fans who insist on a Windows phone. Why not? They have the code

already, and it‘s probably what their people want.‖

―Nobody around here is proud of their Windows phone. The carriers

don‘t go out of their way to sell them unless you‘ve already turned

down Android and the iPhone, or they don‘t have an iPhone to sell. If

you say you want it for business, they might offer the Windows phone

instead of a BlackBerry, but they‘ll probably just go back to the

Android. Around here, if you‘re not sporting a Droid or an iPhone,

you‘re probably happy with a Blur, one of the lower-power Motorola

phones. You‘re not going to ask for something in the middle.‖

―You might see some people shift from buying desktops to buying

Windows phones. I know, that‘s a little utopian, but the fact is, most

people chained to a desk don‘t use anywhere near all the computing

power they have. They really just need a way to check e-mail, update

the Twitter account, type a report, handle POS or patient care.

Windows phones are cheaper and a lot more mobile.‖

―I don‘t know why there‘s no Windows tablet push. It seems to me they

could sell tablets instead of desktops and make everyone happy. The

workers get a machine they can take home and work on weekends.

The company gets a small price break and a lot more productivity.

Carriers don‘t care. The manufacturers get a price point more like the

desktop. Even a high-end Windows phone costs maybe $100.‖

I don‘t think [paying

developers] will work. It‘s just a

temporary stimulus. People will

take the cash and make a few

apps, but at the end of the day,

if they‘re not exposed to a wide

user base and people don‘t

adopt them, then it‘s just going

to a flounder.

Business Development Executive

Mobile App Developer

I don‘t know why there‘s no

Windows tablet push. It seems

to me they could sell tablets

instead of desktops and make

everyone happy. The workers

get a machine they can take

home and work on weekends.

The company gets a small price

break and a lot more

productivity.

Principal

B2B Software Development Firm

Page 8: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

8

Independent contractor with experience building mobile apps for government and commercial clients; his portfolio is

heavy in scheduling, content management and other productivity apps

The source would be happy to develop for Windows 7 Mobile if any of his clients were eager to pay him to do so. However,

most of his commercial partners are looking to develop in-house code that works on the Android platform. He does not

expect Windows devices to become popular in the phone market, but he would be interested in a table device.

―So far nobody is asking me to develop anything for a Windows Mobile environment, but that might just be

because people I work with tend to be driven by their employees‘ mobile choices and none of their key staff are

buying Windows phones. They‘re buying a mix of Androids and iPhones, and my clients would rather develop for

Android.‖

―We‘re really too busy with Android in particular to worry about what‘s going into the other app stores. Granted

we‘re not an app store shop—we build custom apps for organizations to use in-house, not to sell in the mass

market—but I hear the same thing from other developers.‖

―If someone wanted me to build something for Windows, especially a

tablet, I‘d do so. It would mean retooling my tool set because we do so

much of our work on Ruby, which is primarily an Apple OS programming

environment that goes toward iPhone and iPad apps. Actually, I don‘t

know who I‘d talk to to do any native Windows Mobile development.

Everyone around here works with the major mobile platforms. There‘s

one old guy who did something for Microsoft years ago, but that‘s about

it.‖

―I don‘t know if there‘s going to be any buy-in at all on the new

Windows phones. I only see them as a novelty, part of the collection of

a fellow tech who has to have one of everything. But the tablets could

get some traction if they‘re sold as real Windows-compliant devices in a

real iPad form factor. Basically, that‘s a lighter laptop.‖

―The tablet is critical for Microsoft because it moves their stranglehold over the workplace into a form of the

mobile environment. It makes the workplace relevant to a mobile world. It might not ever be an iPhone or an

iPad killer, but it would do something more important for Microsoft, which is keep the workplace running on

some version of Office. And, of course, commercial IT would love it because it lets them get more leverage on

their deep investment in a Microsoft operating environment.‖

―I don‘t know why they bungled the Dell [Inc./DELL] tablets so badly. There was supposed to be a 10-inch Dell

Windows tablet six months ago, but as far as I can tell it turned back into a 3-inch phone without much fanfare.

There is a Dell Windows tablet but it‘s the old 5-inch format, really an ungainly smartphone.‖

Veteran software designer turned startup game developer; expects the flagship game to be available on mobile, tablet

and Web platforms by mid-2012; repeat source

The source has no real interest in developing for Windows 7 Mobile given its business-only aura. He said most mass-

market game apps are platform-agnostic.

―We‘re not developing actively for Windows phones because even if we knew someone with one of those

phones, they‘d probably be interested more in business than in our dungeon crawling content. It‘s true that

people play a lot of World of Warcraft on Windows desktops, but they don‘t play it much on BlackBerries. That‘s

what I‘m talking about.‖

―If someone wanted to play our game, they could just point Skyfire [Labs Inc.] or even [Citadel Development

Corp.‘s] PocketExplorer to our site, and that would be that. Same as they‘d do it at the office. No native code

required.‖

Project manager for an iPhone app development firm

This source said her firm has no interest in building apps for Windows mobile.

―We don‘t plan on developing for the Nokia/Microsoft platform for the foreseeable future. We have more

work/clients than we know what to do with who have iOS needs.‖

New Zealand-based software developer who has several iPhone apps to his credit

Development for the Nokia/Microsoft platform is already underway, especially at larger firms that have the resources to

take on the risk. Small developers familiar with the device and its software will create apps for the OS in hopes of being

We‘re really too busy with

Android in particular to worry

about what‘s going into the

other app stores. … I hear the

same thing from other

developers.

Independent Contractor &

Mobile App Developer

Page 9: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

9

early to a growing trend, though independent developers are likely to stick with the platform they know best. The key to

attracting more developers will be the success of the phone once it is released.

―Developers are already building apps for the Windows Phone platform, and I‘m sure they are hoping for a boost

in device numbers when the Nokia device goes on sale.‖

―Big development houses will probably, or have already, port to the

Windows Phone platform as they have the resources available to

gamble on it. Below that, I expect that the smaller developers will be

enthusiasts who have the device and want to develop software for it.

Perhaps a little bit like the iPhone before everyone saw how much

money there was in it—although that revelation came rather quickly.‖

―As the development environments are quite different, I expect that for

independent developers, they‘ll stick with one platform. But there

should be enough independent developers already developing with MS

technology to build a strong market.‖

―If they manage to sell a whole lot of devices, then it would start to

attract a wider field of developers. At the moment, with the current size

of the ecosystem, it seems that it‘s more for love than money, which

they need to move past to make a professional ecosystem.‖

―I hope that it is a success and they do build impressive numbers. The

smartphone market as a whole is much improved with competition. I

have been disappointed with Android where it seems to suffer from the same problems as the earlier phone

software markets—dependence on carriers messing around with the OS. The Windows brand seems to have

suffered so much in recent years that I‘m not sure a phone so branded will thrive.‖

CEO of an independent iPhone and Android app development firm

Microsoft is wooing some developers by paying them, waiving fees and giving them hardware to get them to build apps

for its OS. This source has not been approached by Microsoft, so he has no plans to develop his apps for Windows Mobile

until he sees a good phone and a robust app store in place.

―I know Microsoft is actually paying Android and iPhone app developers, giving them grant money to build their

apps to Microsoft.‖

―It‘s desperation, but it‘s a good thing for developers. They‘re getting paid to put their apps in their store and

make money. They‘re waiving developer fees, which are about $100 a year, and they‘re sending them tablets

and all these goodies. I didn‘t get approached by Microsoft, but I know someone who did and he was

overwhelmed that this was coming from Microsoft, which has had a bad name all these years [among

developers], that they were doing something for developers.‖

―If they approached me and said they‘re going to waive the developer fee, then sure, I‘d do it. But to pay $100 a

year for something that I don‘t know what‘s going to happen with it, I‘m not going to take that chance. With the

[Apple] App Store, I‘m making my money back.‖

―I‘m going to wait and see before developing for a Nokia Windows

phone. I think there are only about 4,000 apps in the Microsoft app

store, maybe even less. It‘s more competitive in the Android and

iPhone stores than in the Microsoft store.‖

―I‘d rather deal with Apple and all their nonsense than put my app in a

store that I know is going to fail.‖

―I think Nokia‘s got to step up first. They need to prove themselves,

that they can build a phone that developers can build apps for. I could

build the greatest app in the world, but if the phone is horrible, who is

even going to pick it up to play a game?‖

―I just want to see what they‘re going to come out with.‖

―[The Nokia/Microsoft partnership] could be huge, but they have to

position themselves right to do it. I know Microsoft bought Skype, so if

they did a Skype Nokia phone, that could be really good. But I‘ve seen

a lot of companies partner with each other and fail miserably. They

have to get their ideas sorted out before they launch something to try

Big development houses will

probably, or have already, port

to the Windows Phone platform

as they have the resources

available to gamble on it. Below

that, I expect that the smaller

developers will be enthusiasts

who have the device and want

to develop software for it.

Software Developer

New Zealand

If they approached me and said

they‘re going to waive the

developer fee, then sure, I‘d do

it. But to pay $100 a year for

something that I don‘t know

what‘s going to happen with it,

I‘m not going to take that

chance. With the [Apple] App

Store, I‘m making my money

back.

CEO, iPhone & Android App

Development Firm

Page 10: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

10

to compete with the HTC [Corp./TPE:2498] Incredible 2 or the Motorola Droid X.‖

―I like [Windows 7 Mobile]. It‘s smart. It‘s user-friendly. The only thing I don‘t like is that clicking a menu item is

slow when jumping to the next menu. I don‘t need a window to do a graphic flip to go to my address book. With

the iPhone, you click the icon and you‘re there. With the Windows 7 phone, you click it, it spins, it does some

crazy things, and then it shows you.‖

―[Android and Windows 7] are both fairly new. They both have their clunkiness. It depends on what bothers you

as a user.‖

―I really think the biggest niche is games, no matter what app market you‘re talking about. Second is

entertainment like Netflix [Inc./NFLX], Vimeo [LLC] or [Google‘s] YouTube.‖

CEO of a leading maker of location-based mobile apps; repeat source

The Nokia partnership is a major positive for Microsoft. The source‘s firm, which had no plans to develop apps for

Windows 7 Mobile, now will consider doing so. Nokia Windows phones are likely to have their biggest effect on the

enterprise side and represent a fatal blow to BlackBerry.

―We had no plans to build for the old Nokia OS [operating system] but

did consider the Microsoft OS. However, since we didn‘t think there

would be much of a Microsoft phones base, it also felt like something

we wouldn‘t end up doing. Now we are considering it strongly.‖

―Nokia definitely gives us more hope for the overall [Windows]

platform, and honestly, so does Microsoft‘s perceived commitment to

the overall concepts in Windows 8. But at this point, it is all very much

wait and see. I am hopeful for the platform though.‖

―The [Nokia/Microsoft] deal changes my feeling about the market

overall, but it‘s hard to say how big an impact it will actually have. It

could be huge, but I anticipate the big push for it will be mostly through

the enterprise rather than on the consumer end. In the consumer

space, I think it will impact Android more than iPhone.‖

―While I think it‘s hard to say how big an impact it will have on iOS and

Android, it definitely is a nail in the coffin for BlackBerry.‖

―Without the [Nokia] deal, Microsoft looked like they were going to

have a tough road ahead. It‘s strange to say it lends legitimacy to Microsoft, but it does. Going at it alone like

they were, it was not looking good for them or for Nokia, but together I feel like they have a chance. It‘s still

going to be very, very tough, but the [partnership] is a good thing.‖

―I think [Windows 7 Mobile] is good. I am glad that it is not another me-too style operating system. It does feel

innovative in a lot of ways.‖

―I actually hoped Microsoft would get into the hardware business if they didn‘t get a partnership like this. Their

hardware has always been very good. It‘s always been mostly peripherals, but it has always been very good.‖

2) INDUSTRY SPECIALISTS Two of four sources said developers will not rush to work on apps for the Microsoft/Nokia platform, especially in the United

States where it has such small market share. More likely, Microsoft will develop apps in-house and become an enterprise

device that serves as a nail in the coffin for RIM. One source has heard enthusiasm from developers eager to leave Android

because the platform‘s most popular apps are free. T-Mobile is the most likely carrier to initially support the new partnership

because of its lack of iPhone, but one source believes AT&T could make a play for it as a differentiator from Verizon and

Sprint now that those carriers have the iPhone. Sources expect Microsoft to use its wealth to attract developers and carriers.

Editor of a Web site dedicated to smartphone news and reviews; repeat source

The Windows OS will help Nokia maintain its dominant position in Europe and will attract European developers. However,

this source does not give the Nokia/Microsoft partnership much chance of winning over consumers or developers in the

United States. He expects carriers to show more interest in Nokia‘s Windows phones than they have in previous Nokia

products, but phones running Android and iOS will remain foremost in consumers‘ minds. Microsoft‘s OS eventually could

get a boost once Windows 8 is released for PCs and consumers become comfortable with it.

We had no plans to build for

the old Nokia OS [operating

system] but did consider the

Microsoft OS. However, since

we didn‘t think there would be

much of a Microsoft phones

base, it also felt like something

we wouldn‘t end up doing. Now

we are considering it strongly.

CEO, Leading Maker of Location-based

Mobile Apps

Page 11: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

11

―It‘s been a chicken-and-egg situation. The U.S. carriers have had little interest in Nokia because consumers had

little interest, and consumers have had little interest because the carriers had little interest in Nokia.‖

―Carriers will have more interest [in Nokia Windows phones], at least at the beginning. I‘m sure the very first

Nokia Windows phone will be picked up by at least one or possibly more U.S. carriers simply because Microsoft

will convince them, whatever it takes. It‘s going to show up. Nokia never had any pull in the U.S., but Microsoft

does.‖

―I still don‘t think consumers will buy [Nokia Windows phones], just as

they haven‘t bought HTC or Samsung Windows phones. Those are fine

devices, but when people go into the store looking for something, what

they want is what they‘ve heard of before and what their friends are

using.‖

―It‘s not that the Windows phone is bad, but consumers have focused

on Android and the iOS. For example, [HP‘s] WebOS is an awesome

operating system, at least as good as Android and iPhone, but it didn‘t

have a chance. BlackBerry is failing for multiple reasons, but one is

that it‘s not one of the big two. When you‘re getting into a two-year

contract, you want to be safe, and buying a phone running an operating

system that nobody you know runs isn‘t safe. For anyone to break in,

even somebody with deep pockets like Microsoft, is tough.‖

―Americans have stayed away from Nokia phones for decades now.

Nobody in America has cared that Nokia has been the biggest phone

maker for a decade. We‘ve bought our Androids, iPhones and

BlackBerries.‖

―Nokia is big in Europe but has less than 1% of the U.S. market. And Windows Phone has only a tiny developer

community. My sense is they might get a decent amount of traffic in Europe, but I don‘t think it‘s ever going to

take off in the U.S.‖

―If you‘re a developer in the U.S. and you have any sense, you‘re developing for Android and iPhone.‖

―Nokia has such a dominant role in Europe. Our European correspondent swears up and down that there‘s a lot

of interest there in the new Nokia phones running Windows.‖

―I can‘t believe that a significant number of people in Europe who have never bought anything other than a

Nokia phone are going to suddenly go get a Samsung phone just because Nokia is running Windows. So if you‘re

a developer in Europe and everybody is using these phones, you‘d be silly not to say, ‗Hey, it‘s time we write

some apps [for Windows 7 Mobile].‘ If you wanted to make a splash in Europe, developing a Windows app might

not be a bad idea.‖

―I think Microsoft is perfectly open to the idea of compensating developers and I think they‘re already doing it. …

They‘re more than happy to send you a Windows phone to use for development.‖

―It hasn‘t gotten them anywhere so far. The competition is just so fierce. But the Nokia partnership really is a

shake up. They‘re so dominant in Europe. They have the lion‘s share [of the European phone market] by a wide

margin. That [market share] will move over [to the Nokia Windows phones].‖

―[Nokia‘s] Symbian has had serious problems, and I‘m sure there are

some [Nokia users] who have gone over to iPhone and Android. That‘s

less likely to happen with Windows. Any growth that iOS and Android

are having in Europe is going to slow significantly [because of the

Nokia/Microsoft partnership].‖

―The Nokia Windows phones are going to be essentially what we‘ve had

before [from Nokia], but they‘ll be running Windows. They‘re promising

that they‘re going to customize it to differentiate themselves, but we

have no idea what that means yet. You have to be careful with that

though because too much tweaking of the operating system to make it

your own can delay OS upgrades, and those are very important to people. If Microsoft releases a new version

and you can‘t get it out to your phones for six months, people get mad.‖

―Nokia‘s old operating system was consistent with everything they‘d done before. If you were familiar with it, it

was easy to use. But if you weren‘t, it was like trying to program your VCR. You had to walk through a billion

menus to try to get anywhere.‖

I still don‘t think consumers will

buy [Nokia Windows phones],

just as they haven‘t bought HTC

or Samsung Windows phones.

Those are fine devices, but

when people go into the store

looking for something, what

they want is what they‘ve heard

of before and what their friends

are using.

Editor, Smartphone News Web site

If you‘re a developer in the U.S.

and you have any sense, you‘re

developing for Android and

iPhone.

Editor, Smartphone News Web site

Page 12: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

12

―Windows Phone 7 is decent. It‘s not my favorite, but I like it. It‘s easy to use. It‘s not very customizable, but the

design is intuitive and quick to use. It is probably easier to use [than Android] right out of the box, but not nearly

as customizable. Android is a decent operating system, but if you like to tinker with your phone, it‘s probably the

best available.‖

―It helps that Windows 8 is going to use pretty much the same thing for the touch version. Long term, the

Windows 8 tie-in [could be a positive]. Right now, when you pick up a Windows 7 phone, it looks like nothing you

have ever seen before. Sometime in 2012, when Windows 8 comes out and people start getting used to that

interface, then when they pick up a Windows phone, they‘ll say, ‗This looks just like my PC. I know how to use

this.‘ That‘s going to be a big jump for Microsoft. If you‘re looking two years down the line, you might get some

synergy from Windows 8.‖

Prominent consumer electronics journalist who has tracked mobile phone developments since the industry‘s beginning;

repeat source

Development for Windows 7 Mobile will be centralized as Microsoft focuses more of its in-house resources on building

apps. The app store model is irrelevant to Microsoft‘s plans for the platform. If Nokia could have motivated developers to

create products for Symbian, it would have done so, so the Microsoft relationship represents a lateral approach. T-Mobile

is an obvious partner for Nokia and Microsoft to cultivate, but AT&T also may be interested.

―I don‘t see or envision much third-party development for Windows Mobile, but I don‘t know if that‘s an issue.

Nokia tried to go the app store route with Symbian, and it didn‘t work. If anything, Symbian at the end was more

open than Android in some ways. The open approach failed. This may be a new approach.‖

―What kind of uptake can these phones get? I think it will initially be slow, but faster than the trade press thinks.

Microsoft will carry the charge here and promote these devices as a replacement to the BlackBerry. As

BlackBerry accounts expire or switch, they‘ll get some traction. I doubt it will ever be huge—maybe where

BlackBerry share is now—but that‘s still better than where Nokia or Microsoft are now in U.S. mobile.‖

―Right now everyone on the carrier side but T-Mobile has the iPhone and is overjoyed to push the iPhone. AT&T

may be willing to contemplate a relationship with Microsoft to keep its differentiation now that Verizon and

Sprint both have the iPhone. In fact, AT&T has such a bad reputation among early iPhone adopters that it can

build a new profile for itself as a top Windows phone carrier. I haven‘t heard any rumblings about this, but it‘s

possible.‖

―T-Mobile would have been the logical partner for Windows as a simple

odd-man-out scenario, but its looming merger with AT&T has stalled

progress there. If the merger falls apart, look to one or the other—or

both—to start talking fast to Nokia to get those phones.‖

―This is also AT&T‘s chance to divorce itself from RIM and the

BlackBerry. A true Windows mobile device would, frankly, make

BlackBerry completely obsolete. You would have real Outlook, real

document systems, real spreadsheets, everything you have on the

office desktop. Corporate IT departments would only need to support

flavors of Windows. If these phones succeed at all, it will be by

cannibalizing the market RIM still has.‖

―The app store is frankly beside the point as far as Microsoft is

concerned. They don‘t see themselves as a platform play. They see

themselves as the content creator or, at worst, the content aggregator.

They won‘t make their money collecting a toll on a universe of 10,000

or 10 million third-party creators the way Apple and Google do. They‘ll

make their money selling Microsoft code and code from close allies to

a captive audience.‖

―The looming update of Mobile 7 will incorporate a standard suite of ‗apps‘ into the core operating system. It‘s

not the ‗a la carte‘ app store model at all. It‘s the systems integration approach that worked for them way back

when with Office. In fact, it will probably leverage the existing Office user base. Office for mobile is something of

a Holy Grail for corporate users.‖

―Corporate IT doesn‘t want to deal with an app store. Corporate IT wants standardized devices that can be

backed up, wiped down and replaced when they get lost or break. That makes a standardized Windows Mobile

environment appealing.‖

The app store is frankly beside

the point as far as Microsoft is

concerned. They don‘t see

themselves as a platform play.

They see themselves as the

content creator or, at worst, the

content aggregator. … They‘ll

make their money selling

Microsoft code and code from

close allies to a captive

audience.

Prominent Consumer Electronics

Journalist

Page 13: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

13

Longtime observer of the mobile industry; repeat source

Microsoft will do what it takes to get its phones into the mobile mainstream. This source suspects the solution will boil

down to throwing money at carriers and developers.

―Microsoft will do whatever it takes to get these phones out there. At this point, it‘s more than a matter of

corporate pride. It‘s a question of corporate ego. There‘s too much at stake here, and the company is too

wealthy to let these phones fail.‖

―Microsoft was in the process of learning how the mobile world works, and then Android changed everything.

Now they‘re about where they were 18 months ago: ramping up for a run at the mobile world with a retooled

product and a more tactically focused plan.‖

―Nokia is really just along for the ride here. They‘re a huge company, but their core business remains the lower-

end voice and music phones that sell well in Europe and Asia. They were never a big player in the smartphones,

so whatever they do here with Microsoft is a bonus. If it succeeds, they succeed. If it fails, they‘ll still have the

old phones.‖

―On the carrier side, T-Mobile wants money, especially if the deal with AT&T falls through. They‘re a natural to

entertain big subsidies from Microsoft to make these phones a viable fourth option behind Apple, Android and

BlackBerry. The other carriers may follow suit, but this is a natural place to start.‖

―Nobody talks about the other manufacturers with Microsoft phones, which is to say Dell, HTC and so on. Dell‘s

phones were not successful because they had no carrier support. HTC was at least on the carrier platforms.‖

Editor of a technology blog focused on mobile computing; repeat source

The developer community has shown plenty of enthusiasm to build apps for Nokia Windows phones, especially as an

alternative to Android for which only free apps have thrived. This source expects Microsoft‘s upcoming Mango OS to be

excellent and, combined with Nokia‘s top-notch hardware, will make for some innovative new phones. He believes

carriers will be eager to carry Nokia‘s Windows-based lineup of phones but noted the difficulty for any new phone to

pierce the dominance of the iPhone and Android-based devices.

―I‘m hearing a very good amount of enthusiasm from developers to develop apps for the Windows Mobile OS, for

a couple reasons. There is a drastic decline in revenue for developers working with Android. A recent report

indicated that iOS app purchases are frequently those that cost money,

while Android app purchases are more often those which are free. The

report even cites an astonishing 8–1 paid app advantage for iOS to

Android. This is causing developers to either jump ship now or at least

look for the exit signs while they look into other options.‖

―I guess it‘s possible that Microsoft could pay developers initially, but

not likely. Though they‘re one of the few corporations that could easily

afford to burn such marketing cash, the only way for a new OS to

survive within the fragmented digital ecosystem of today is to be not

only truly different but exciting as well. Without enough of an OS buzz

to drive sales of hardware, you won‘t succeed anyway.‖

―Any corporation with huge financial resources and the clear desire to

stick it out during the growing pains will have the trust of people to

know the apps will come in time. This in turn helps ease developers‘

fears of any lack of market adoption. As the symbiotic relationship

between consumer trust and developer lack of fear continues to

strengthen, the perception of success builds steam and the proverbial

dominoes fall faster and faster.‖

―It is no small fact that the Windows Mobile OS is late to the

smartphone party, and with the iOS and Android platforms having solidified such dedicated bases already over

the past few years, it‘s close to impossible to crack into that market share. In short, people are so entrenched in

their platforms already with many apps paid for—and not transportable to a new OS—that it‘s tantamount to

asking consumers to take a significant financial loss to make the switch to something completely new. The only

way they will is if they see the payoff worth the initial loss.‖

I‘m hearing a very good amount

of enthusiasm from developers

to develop apps for the

Windows Mobile OS. … There is

a drastic decline in revenue for

developers working with

Android. … This is causing

developers to either jump ship

now or at least look for the exit

signs while they look into other

options.

Editor, Technology Blog

Page 14: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

14

―I find the current build [of Windows mobile] to be nothing short of an unfinished beta OS. Battery life on

numerous devices was the worst of any device I have ever tested, data is constantly eaten up in the background

without initiating any apps or tasks, and there … was no one feature I could say ‗wow‘ to.‖

―But the soon-to-be Mango build of the Windows Mobile OS is rumored to be everything that the current build is

not—fun, intuitive, better battery life, and with some of those ‗wow‘ features it was lacking before. Time will tell,

but the word of mouth from developers I speak to is that the Mango Windows Mobile OS will be a player in the

market.‖

―I expect full commitment from carriers once Mango is released on

Nokia hardware. I am eagerly looking forward to the final release. For

too long now, I‘ve tested just another variant of the same exact thing

over and over and over. This is something new. This is something

unique. This breathes some much-needed new life into the vanilla

mobile arena we seemed to be seeing crystallize for too long.‖

―While Nokia clearly needs Microsoft far more than the other way

around, these two companies joining forces will send the message of

‗trust us.‘ If consumers were hesitant to adopt the Windows Mobile OS

before, they won‘t be now.‖

―Anyone who knows anything about mobile hardware will tell you that Nokia‘s reputation of near-perfection in

manufacturing mobile phones holds water. However, their attempt at developing their own mobile OS was a

failure at the end of the day. The hardware used for initial Windows Mobile devices was nothing to write home

about. These two pieces of information makes this a marriage of complete convenience. Microsoft alleviates its

only real concern with regard to its end goal of penetrating the market with Windows Mobile OS, while Nokia

stems its bleeding in the sales department and alleviates its headache of having to keep up a failing mobile OS

in order to stay relevant in the global market.‖

―Aside from predicting consumer demand, carriers also want to be the first with something revolutionary. When

Verizon shot themselves in the foot declining to release the first iPhone, they found themselves scrambling to

come up with a backup plan after witnessing its unprecedented success on their chief competitor‘s network.

They turned to a new upstart called Android, and marketed the heck out of it. To their credit, they were smart in

realizing they needed a mobile OS to drive smartphone sales, and not targeted manufacturers. I believe that the

carriers then realized a good mobile OS is more important than the hardware it runs on, and that something

other than iOS can still be wildly successful.‖

―At the end of the day, carriers don‘t want to miss out on the next potential big thing. Verizon got very lucky with

Android after a monumentally bad business decision. Nobody wants to take a similar risk again in turning down

a potentially successful mobile OS, especially considering that after Windows Mobile OS, there‘s nothing else out

there waiting in the mobile wings. I believe carriers will adopt it eagerly and universally.‖

Secondary Sources

Four secondary sources focused on Nokia and Windows phones losing share in Europe, Windows 7 Mobile making inroads

with independent app developers, and information and reviews of Microsoft‘s new Mango OS.

Sept. 15 PopHerald.com article

Data shows that Nokia phones and Windows phones are failing in Europe, giving pause to the expectation that the Nokia

Windows phone will experience success in this region once it is released.

http://popherald.com/news/nokia-windows-phone-failing-ahead-of-the-iphone-5-release-date/11077

―New data posted by comScore is suggesting that Windows Phone, and Microsoft‘s new smartphone partner

Nokia is failing in Europe.‖

―Nokia‘s bailiwick, Europe, is not into Symbian anymore according to the data provided by comScore.

Surprisingly, Nokia‘s future platform, Windows Phone, is also not the future of the region based on the data.‖

―The data shows that Nokia‘s very own Symbian received a double-digit drop YOY from 53.9% last year to 37.8%

in July of this year. Meanwhile, Apple‘s iOS operating system powering the iPhones received the 1.2% market

share, while Google‘s insanely popular operating system Android stole the 16.2% from Nokia‘s Symbian and

I expect full commitment from

carriers once Mango is

released on Nokia hardware. …

This is something unique.

Editor, Technology Blog

Page 15: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

15

Microsoft‘s Windows Phone. The new mobile operating system of Microsoft suffered a 4.8% slide down to 6.7%

only.‖

―The Android operating system, being used by smartphone manufacturers like Samsung Mobile, Motorola

Mobility and HTC, are gaining like crazy not only in Europe but also in other parts of the world including the

United States. In fact, the new smartphone from Samsung, the Galaxy S II, is expected to arrive in USA this

month. The device is the biggest selling smartphone of the South Korea-based company with 5 million units sold

in less than three months.‖

―Apparently, Nokia already inked partnership with Microsoft, allowing

Microsoft to get Nokia ‗exclusively.‘ According to Nokia‘s CEO Stephen

Elop, his company‘s decision to not adopting the Android route is for

his company to gain its own ‗identity‘ in the market that is currently

flooded by Android and iPhones.‖

―In his interview with a Chinese network, Elop claims the Windows

Phone and Nokia alliance will focus on people, which is a new

approach that will challenge other platforms that focus on

‗applications.‘ The upcoming Windows Phone of Nokia will try to

convince the current Symbian/Nokia users to migrate to Windows

Phone, aside from convincing the users of other platforms to go ‗Nokia

and Windows.‘‖

―According to Elop, Nokia phones with Windows Phone operating

system will arrive gradually in markets, including Asia and Europe. Can

these devices regain the market share ‗snatched‘ by Google Android

and Apple iOS? So apparently, Nokia will face a series of Android flooding this year and early next year courtesy

of Samsung, HTC and other smartphone manufacturers that will try to tap the popularity of Android. Samsung

will launch the Galaxy Note later this year or early next year.‖

―The new Galaxy Note is a ‗tabphone‘ or the device that ‗will bridge the gap between smartphone and tablet.‘

HTC on the other hand will launch two devices with the Beats Audio branding running alongside the Android

operating system. The HTC Runnymede and the new HTC Sensation XE.‖

―Aside from the two Android devices, HTC and Samsung are also playing the Windows Phone card with new

devices announced like the Samsung Focus S, Focus Flash, the new HTC Titan and the HTC Radar. Can Nokia

even outsell these devices?‖

―Lastly, Nokia is also expected to face a big wall from Cupertino, the rumored new iPhone—or the iPhone 5. No

words yet about the specs and the exact release date of the iPhone 5 but reports from Wall Street Journal,

Bloomberg, etc, have confirmed that the iPhone 5 will sport an 8-megapixel primary camera, new iOS 5

operating system that features better notification, iCloud and other new features, and dual-core processor

clocked at unknown speed.‖

Sept. 5 PCWorld article

Windows Phone 7 is winning over some independent app developers because of the platform carries less competition

from developers dedicated to Android and iOS. Some independent developers also will draw on their experience in

working with Microsoft‘s tools.

http://www.pcworld.com/article/239404/why_is_windows_phone_7_winning_over_some_indie_app_developers.html#t

k.mod_rel

―While many app developers have merely reworked their Android or iOS apps to function on Windows Phone 7, a

handful of independent app makers are developing exclusively in Microsoft‘s mobile operating system. Why are

these bootstrapping coders throwing all of their (spare) time behind the insurgent OS, and not Android or iOS?‖

―For some, it‘s because there‘s less competition on WP7, or because they‘re most familiar with Microsoft‘s tools,

or because they simply don‘t care for the way iOS and Android operate. Microsoft is fighting to exploit those

beliefs and recruit the developers who hold them; the company‘s success or failure at doing so may mean the

success or failure of the Windows Phone 7 platform.‖

―With just over 30,000 apps available for WP7, and only 2 percent of the United States smartphone market,

Microsoft is a very small fish in a very competitive pond. But it is growing: According to Microsoft‘s stats,

Windows Phone 7 gained some 5000 apps in the past two months. Sure, that‘s nothing next to the half-million

New data posted by comScore

is suggesting that Windows

Phone, and Microsoft‘s new

smartphone partner Nokia is

failing in Europe. …

Surprisingly, Nokia‘s future

platform, Windows Phone, is

also not the future of the region

based on the data.

PopHerald.com Article

Page 16: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

16

apps on iOS, and the 200,000 you can find on Android, but WP7‘s growing apps store shows that some

developers think the platform is worth the time and effort.‖

―At the moment, Microsoft is still trying to get its little app garden to flower. When Windows Phone 7 hit the

market early last year, reports said that Microsoft was offering free equipment, revenue guarantees, and even

cash incentives to developers to make apps for the WP7 platform, something that Apple and Google have never

had to do for iOS and Android.‖

―Microsoft representatives won‘t comment on whether the company still pays developers to make apps, but

Microsoft isn‘t shy about the fact that it is attempting to lure developers, employing ‗more than 1000 ‗Microsoft

Evangelists‘ around the world,‘ according to Matt Bencke, general manager of Windows Phone apps for

Microsoft. These globe-trotting Evangelists seek out developers at iOS and Android developer conferences or at

grad schools, or they host hackathons in an effort to ‗convert‘ programmers to the WP7 platform.‖

―‗The hard reality of our competitive life is, we have to go where the developers are,‘ Bencke says. ‗We realize

we‘re in a bit of an arms race, and the number of apps we have matters.‘‖

―The Evangelist method has seen some success. It‘s responsible for Thumba, a photo-editing app that rivals

most of the image-editing apps on iOS, and pretty much every photo-editing app on Android.‖

―The developers, Pieter Voloshyn and his partners Luiz Thadeau and Jhun Iti, were working on a prototype photo

editor using Microsoft‘s Silverlight at The Methodist University of São Paulo in Brazil a few years back. Voloshyn

says that a Microsoft Evangelist based in Brazil heard about their project and reached out to him and his

partners, supplying the three with a Windows Phone 7 device and allowing them to submit the app before the

app store opened in 2010.‖

―Although Voloshyn says the team hasn‘t made any money from Microsoft for developing the app, they have

made a considerable sum selling the app itself, which costs $0.99. WP7 developers usually keep 70 percent of

their earnings from the app store. Voloshyn notes that even though he couldn‘t live off what he makes from his

app, its earnings did help him pay for his recent wedding and honeymoon.‖

―Voloshyn isn‘t starry-eyed about Microsoft‘s position in the smartphone game, but being recruited by Microsoft

was a positive experience for him. ‗I think the [platform] leadership will be shared among the three [Android,

iOS, and Windows Phone 7]. Microsoft came late in the game but came well, and I see a lot of gas for WP7 to

compete,‘ he says.‖

―That said, when asked what kind of phone he owns, Voloshyn admitted that he still uses a feature phone: ‗I‘d

love to have a WP7, but the price here in Brazil, when it comes, is charged with so many taxes that it

discourages me. But I still have a hope of getting it with a fair price.‘‖

―Astoundingly, even among developers, Microsoft needs to fight to make owning a Windows Phone 7 handset--

and using it for everything in day-to-day life--a priority.‖

―Calum McLellan‘s story is a bit different. A New Zealander living in Germany, he works at a German software

company, programming a data-management system. He wanted to try creating mobile apps, and he figured he‘d

have enough spare time to do a little coding in the evenings after he put his son to bed.‖

―‗I was considering starting with Android last year, but then WP7 came

out,‘ McLellan says. ‗I have a lot of experience with Windows

Presentation Foundation, Windows Communication Foundation, and

Silverlight. I was also turned off by Android due to the number of apps

available, the poor average quality of the apps, and the lack of

developer support. I didn‘t want to work with Apple because it‘s very

difficult for someone without a Mac. And, in my opinion, these are the

only three mobile platforms really worth considering at the moment.‘‖

―Despite clocking over 45 hours a week at his full-time job, McLellan

created the app Feed Me, a mobile RSS feed reader, and released it in

early 2011. He said he spends about 10 hours a week keeping up the

app, and about 30 to 40 hours a week right before he releases an

update. He plans on issuing one more update before releasing a

Mango version this fall.‖

―But has he made any money? ‗Not right now. I sort of hope that in a couple of years I can get a chunk of

money,‘ he says. The ads that run in his free app have earned him a little cash, but require a U.S. bank account

for him to withdraw the revenue (until the ad-placement service expands to Europe, which he hears will happen

But has he made any money?

‗Not right now. I sort of hope

that in a couple of years I can

get a chunk of money. …

Windows Phone doesn‘t quite

have enough market share at

the moment,‘ McLellan admits.

PCWorld Article

Page 17: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

17

in a couple months). Regardless, the earnings are modest: ‗Windows Phone doesn‘t quite have enough market

share at the moment,‘ McLellan admits.‖

―He still thinks Windows Phone 7 is a better platform, because it‘s an enclosed consumer phone like the iPhone,

rather than an open-source mess of possible tweaks and adjustments. ‗I spent quite a while with Android last

year, looking at the two OSs. With Android, I just couldn‘t stop messing with it, and that drove me nuts. Windows

Phone saves me a lot of time.‘‖

―Still, the slow profits are a concern not just for app developers but also for Microsoft, who clearly wants to see

app makers win big. Microsoft‘s Bencke says the company has been predicting a gold rush for developers. But

where is that rush? ‗It‘s 1847 for us, and the ‗49ers haven‘t arrived in droves,‘ he says, laughing. ‗We‘re seeing

lots of positive signs, and we do have developers who are making great money. It‘s early in the gold rush.‘‖

―While McLellan is a somewhat ‗platform agnostic‘ developer who actively chose between Windows Phone 7 and

Android, Geert van der Cruijsen became a WP7 developer because he was already working a lot with Windows

software creation tools. van der Cruijsen is Dutch and works as a consultant at Avanade, a company that builds

software using Microsoft technologies.‖

―His company had a contest to see who could build the best WP7 app, and he came in second with his app

Social Lookout, which allows the user to follow tags and trends--rather than individual people--on social

networks. He tied up some of the app‘s loose ends after the contest, and submitted it to the Windows Phone 7

app store. Since then, he has worked on a few more WP7 app ideas outside of work, including his recent app

PinPin ATM Locator.‖

―Even so, van der Cruijsen is pragmatic about Windows Phone‘s potential. ‗I don‘t see WP7 catching up to

Android anytime soon. I think Windows Phone 7 has more potential than iOS, except for the coolness factor that

Apple has for some reason.‘ His app development remains a hobby and hasn‘t made him any money, although

he‘s working on paid and ad-supported apps for the future.‖

―Like McLellan, van der Cruijsen expresses displeasure with how easily average users can get lost in the

überfunctionality of the Android platform. ‗Android is really open, so it has more potential, but it is also a danger

because it can get to hard to use for nontechnical people,‘ he says. Android is now the leading OS for

smartphones, but developers like McLellan and van der Cruijsen prefer to give customers apps that they won‘t

have to ‗fiddle with,‘ subscribing to the idea that there‘s potential in constraint.‖

―And van der Cruijsen thinks Mango is round two for the fighting OS: ‗Windows‘ Metro UI is really adding

something, and I like that lots of things are integrated in the OS that you use a lot, like Facebook and Twitter.‘‖

―Fortunately, the passion for good apps is out there among Windows Phone 7 developers, even as Microsoft

continues to struggle in making its phone a ubiquitous device. And Microsoft‘s Bencke seems to have his heart

in the right place when it comes to working with the grassroots: ―The developers absolutely deserve to make

money. The investment is pretty reasonable, whether you‘re a rookie or an experienced developer; we go out of

our way to help you out.‖

Sept. 14 CNET article

Microsoft is pushing developers to submit their apps for the new Mango OS as soon as possible given that the update will

be distributed to existing customers this fall. AT&T announced it will introduce new phones from Samsung and HTC on

the new Mango OS in the fourth quarter.

http://news.cnet.com/8301-30686_3-20106271-266/microsoft-to-app-developers-submit-mango-apps-to-marketplace-

now/

―Microsoft is encouraging application developers to get apps for its latest version of the Windows Phone

operating system into its Marketplace ASAP.‖

―Matt Bencke, general manager at Microsoft, reminded developers in the company‘s Windows Phone blog today

that AT&T has already announced its lineup of new phones [from HTC and Samsung] that will run the next

version of Windows Phone, dubbed Mango. And he encouraged them to get their apps in Microsoft‘s online

application store, hinting that the update will be available very soon.‖

―‗The time to get your Mango apps into Marketplace is now,‘ he said. ‗Existing customers will begin getting their

OS update this fall. At a minimum it‘s worth updating your existing app now so that when customers experience

Mango they benefit from ‗fast app switching‘ multitasking, which requires little more than a recompile of the

app. If you want to stand out from the crowd, get your apps updated to take advantage of other Mango features

like Live Tiles and App Connect.‘‖

Page 18: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

18

―The company has been vague about when Windows Phone 7.5 will actually be released. But judging from the

number of executives pushing developers to get their apps in the store right away, a launch of the new software

is likely coming sooner rather than later.‖

―Microsoft‘s director of Windows Phone program management, Joe Belfiore, linked to Bencke‘s blog post in a

tweet today.‖

―‗Hey devs—we‘d love you to get your apps updated to V7.1 and in marketplace *quite soon*! Just rebuild to

enable MT.‘‘

―Brandon Watson, Microsoft‘s senior director of Windows Phone 7 development, also emphasized the

importance of getting Mango apps into the Marketplace as soon as possible in his tweet, which also linked to

Bencke‘s blog post.‖

―‗I keep getting asked about when to submit your Mango apps ... *cough* now *cough*‘‖

―Microsoft announced Mango in June. The upgrade includes more than 500 new features and is the biggest

update to the platform since it was announced last year. In August, the company began accepting Mango apps

to the Marketplace application store. At the time, it launched the final release candidate for the Windows Phone

Software Development Kit 7.1, which allows software developers to create and publish apps directly to the

Windows Phone Marketplace.‖

―With all the pieces for the Mango launch in place, it seems likely that Microsoft will be pushing out the new

update soon.‖

Aug. 30 PCWorld article

This article discussed the merits—and the limitations—of Microsoft‘s upcoming Mango OS.

http://www.pcworld.com/businesscenter/article/239137/windows_phone_mango_ripe_or_rotten.html

―As soon as September, we may see the first smartphones based on Microsoft‘s Windows Phone 7.5 ‗Mango‘

release, the OS update with what CEO Steve Ballmer says has more than 500 new features. The first version of

Windows Phone 7 had a compelling UI but fell far short of the iPhone and even Android devices in many areas

critical to business users. It was a flop in the market, but Microsoft asked everyone to give it a second chance.

‗Mango‘ is that second chance, and Microsoft sent the final ‗reboot‘ OS to smartphone makers a month ago.‖

―Does ‗Mango‘ address the many gaps in the first version of Windows Phone 7? It‘s hard to say, as working

versions of the OS are not yet available for people like me to test. And although Microsoft has been dribbling out

information for months on ‗Mango, there‘s little meaningful detail yet—especially on the core business

capabilities that the first version lacked. When I asked Microsoft for

what ‗Mango‘ added for business users, it was unable to tell me,

pointing me instead to a vapid blog entry that said nothing about

business. The improvements Microsoft has focused on publicly tend to

fall into two camps: social applications and information sharing.‖

―Chances are we won‘t know for sure about its use in business settings

until the first Windows Phone 7.5 smartphones are released. But

here‘s what to look for in the new OS, based on what was missing in

the original. In some cases, Microsoft has promised to fill these gaps,

so I note those potential fixes as well.‖

―It was a major shocker to me that Windows Phone 7 had no support

for corporate-class security, which was available in its predecessor,

Windows Mobile. In fact, Windows Mobile became widely used in

government agencies because of these capabilities. As a consequence,

few businesses could let users adopt Windows Phone 7 devices.‖

―Security Capabilities; What‘s missing:

o On-device encryption

o Complex passwords and enforcement

o Virtual private networks

o Support for static IP addresses‖

―Web and Internet Capabilities; What‘s missing:

o HTML5 support. The adoption of Internet Explorer 9 in ‗Mango‘ brings HTML5 support, though IE9

supports significantly fewer HTML5 features than any other mobile browser. Still, it‘s progress.

Does ‗Mango‘ address the

many gaps in the first version

of Windows Phone 7? It‘s hard

to say, as working versions of

the OS are not yet available for

people like me to test. And

although Microsoft has been

dribbling out information for

months on ‗Mango, there‘s

little meaningful detail yet—

especially on the core business

capabilities that the first

version lacked.

PCWorld Article

Page 19: Developers Have Little Interest in Apps for Nokia/Microsoft Platform€¦ · Developers Have Little Interest in Apps for Nokia/Microsoft Platform 321 Pacific Ave., San Francisco,

Nokia/Microsoft Platform: App Developers

321 Pacific Ave., San Francisco, CA 94111 | www.blueshiftideas.com

19

o Adobe Flash support. Yes, iOS and BlackBerry OS don‘t support this either, and Flash support on

Android and the now-defunct WebOS is limited, so this is not a big issue for me, but it is for some users.

o Bookmark folders in the browser.‖

―Windows Phone 7‘s user interface takes a tiled approach that really stands out from other mobile OSes, even

WebOS, whose card-based metaphor shares philosophical roots. But Windows Phone 7 fell short in basic core

OS capabilities, and it provided less-sophisticated email and business-oriented apps than Apple‘s iOS.

Furthermore, Microsoft‘s Office apps for Windows Phone 7 are, to put it mildly, primitive, especially when

compared to the Apple iWork, Dataviz Documents to Go, and Quickoffice apps available for iOS.‖

―Application and UI capabilities; What‘s missing:

o Multitasking. Microsoft says ‗Mango‘ will provide the ability to switch apps so that they continue to run

in background.

o Copy and paste. Microsoft also says it will add this capability to Windows Phone 7 ‗Mango.‘

o Device-wide search.

o App-specific location controls.

o Message threading. Microsoft has said it will add this capability to its mail client and have it work

across email accounts.

o Email folder automatic syncing.

o Email search by fields (such as From or Subject).‖

―Although the first version of Windows Phone 7 had many gaps that mattered greatly to business users, the

smartphone OS also includes several capabilities that show a more competitive side to the OS. Voice-based Web

searches (also available on Google‘s Android), an onscreen keyboard containing emoticons, opt-in auto-

correction, and the ability for the browser to represent itself to websites as a desktop browser (for better display)

are all examples of its strengths.‖

―In the social arena, Windows Phone 7 ‗Mango‘ promises some appealing capabilities, such as letting users

engage in one conversation across multiple social networking and instant-messaging tools.‖

―When ‗Mango‘ smartphones finally become available, we‘ll be able to see which omissions have been

addressed. If they have, Windows Phone 7 could become a competitor to the iPhone and Android among

business users. If not, it‘ll probably languish. After all, social networking by itself is not enough to attract users,

as Microsoft learned the hard way with its ill-fated Kin ‗social‘ phone.‖

Next Steps

Blueshift‘s follow-up report on the Nokia/Microsoft platform will assess sales of new Mango OS Windows phones, which will

arrive in advance of Nokia Windows phones. We also will monitor Microsoft‘s efforts to develop its apps market and to attract

new developers. We will check on the possibility of a Windows tablet, and we will determine the partnership‘s effects on RIM

in the enterprise space.

Additional research by Seth Agulnick and Scott Martin

The Author(s) of this research report certify that all of the views expressed in the report accurately reflect their personal views about any and all of the subject securities

and that no part of the Author(s) compensation was, is or will be, directly or indirectly, related to the specific recommendations or views in this report. The Author does not

own securities in any of the aforementioned companies.

OTA Financial Group LP has a membership interest in Blueshift Research LLC. OTA LLC, an SEC registered broker dealer subsidiary of OTA Financial Group LP, has both

market making and proprietary trading operations on several exchanges and alternative trading systems. The affiliated companies of the OTA Financial Group LP, including

OTA LLC, its principals, employees or clients may have an interest in the securities discussed herein, in securities of other issuers in other industries, may provide bids and

offers of the subject companies and may act as principal in connection with such transactions. Craig Gordon, the founder of Blueshift, has an investment in OTA Financial

Group LP.

© 2011 Blueshift Research LLC. All rights reserved. This transmission was produced for the exclusive use of Blueshift Research LLC, and may not be reproduced or relied

upon, in whole or in part, without Blueshift‘s written consent. The information herein is not intended to be a complete analysis of every material fact in respect to any

company or industry discussed. Blueshift Research is a trademarks owned by Blueshift Research LLC.