Microsoft Corp. today announced plans to restructure the company’s phone hardware business to better focus and align resources. Microsoft also announced the reduction of up to 7,800 positions, primarily in the phone business.
Called it three years ago. The new Microsoft does not need a mobile OS, it just need to push its services everywhere; let them be Office, Azure, Sunrise, Wunderlist, etc. Nokia hardware division is not necessary anymore.
For desktop computers, Windows is still huge and it will remain huge for a long time. It is a good sign to see Microsoft working on a new browser and a simple UI. They need to keep Windows relevant on desktop.
For mobile, it seems way smarter to just develop software and apps for iOS and Android: these are the platforms people use.
Of course, nothing explicitly mentions the death of Windows Phone, and we will probably see one or two more new Lumia devices. Don’t expect best sellers though.
Still, a very sad news for the employees. Horace Dediu on Twitter:
Two thirds of (formerly Nokia) Microsoft employees in Finland to be laid off.