Microsoft Looks to Gain More Marketshare with Intro of Lumia 521 - The UpStream

Microsoft Looks to Gain More Marketshare with Intro of Lumia 521

posted Sunday May 5, 2013 by Nicholas DiMeo

Microsoft Looks to Gain More Marketshare with Intro of Lumia 521

Microsoft's innovative Windows Phone 8 has been in the market for a while now, and while results haven't been exponentially overwhelming, there has been steady growth in the market share category. So far, flagship devices from Nokia, as well as great smartphones from HTC and Samsung have proven well worth it for those who have spent the $200+ on the handset, however, Microsoft is looking to further take some share from Apple by getting their operating system into as many hands as possible. How? By offering a less expensive option.

Coming in at under $150 and being available at Wal-Mart, the Nokia Lumia 521 will have a ton of exposure at a retail establishment that doesn't necessarily tout "high-end." Head of Windows Phone, Terry Myerson, said,

There is an opportunity for us to offer a very high quality device in the mainstream. That's where we've made progress in the last couple of months and it's a strategy we'll continue to explore in the United States.

The Home Shopping Network has already launched the Lumia 521 and it sold out in hours, proving the phone is hitting the exact demographic Microsoft has set it out for. On specs, it's got real 4G, a 4" touch screen, 5MP camera and HD resolution. Running on T-Mobile, the key reason it is being highlighted is because it won't require a long-term contract for you to acquire one at the sub-$150 pricepoint. All you'll need is a $30 unlimited data and text plan - just keep an eye on how much 4G data you're using, as it will be heavily throttled.

In the end though, Microsoft is sitting at 3.2 percent marketshare, with Apple having 39 percent and Android with 52 percent. Given that sales of Nokia WinPho 8 handsets are up 27 percent quarter-to-quarter, moving 5.6 million of the devices total, one could surely see sales rising even more after the rollout of the 521 into Wal-Mart. As a side note, WinPho has 20 percent market share overseas and has about 7 percent in the UK.

On the move to go with T-Mobile for this smartphone instead of the other big companies, who haven't chosen to go with a non-subsidized option, Myerson said,

It (subsidization) is a compelling business model for them. If you are Samsung, Apple, AT&T or Verizon, it's where everything's working, you are growing share, you are growing profits. If you are an incumbent with a successful business model, you're not going to be jumping to throw it out.

Are you in the market for a new phone and are with T-Mobile? Are you looking at the Lumia 521? Tell us that, plus all of your thoughts on Microsoft getting into the lower-end of the smartphone market in the comments below.

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