Microsoft knows they are entering an already well-saturated and well supported market in the smart phone world. They will need to go full steam ahead if they are going so they are going infiltrate the smart phone market. People seem to be completely satisfied with their iPhones and Androids so it will take something impressive to pull them away. Well they have the bank-roll and it looks they are going to use it.
Jonathan Goldberg, a telecommunications analyst at Deutsche Bank, Microsoft is prepared to fund initial marketing, development and manufacturing subsidies with as much as $400 million. That’s 400 more stacks like the one above. In other words a ton of money.
That should be sufficient to help them break-in as long as it is spent correctly. Granted Google, Verizon, and Motorola spent $100 Million but now they are established player and have a huge part of the market. Only time will tell.
Microsoft failed with the Zune but did succeed with the XBox so right now their odds are 50/50 when trying to break into new markets. What do you think is it sink or swim for Microsoft in the SmartPhone industry?
