Microsoft are tipped to end the Lumia line by the end of the year, with no Surface Phone planned to take its place. Is this the end of Microsoft’s handset business?
We could be seeing the end of Microsoft’s involvement in the smartphone market as a source speaking to Mobile News confirmed plans to exit the space. Prior to supposed plans to leave the smartphone business Microsoft made restructuring plans that saw 1,850 jobs cut from its global workforce. In the UK 100 jobs were cut the firm’s UK head office, 30 of those jobs were from the handset team.
The source, an anonymous former exec said, “We found out about the job cuts, first from Satya Nadella and then from the various division heads in the UK.”
“In the announcements, it was made clear they were pulling out of devices and will not be making any new phones,” he said.
“We were even told we could start using handsets at work made by rival manufacturers and it wouldn’t be frowned upon,” he added.
Rumours on a Surface Phone was painted to be the saviour of Microsoft’s ailing smartphone business. According to rumours the Surface Phone was expected to be released this year, but Microsoft’s distribution partners have not heard anything on the matter.
“We normally see what’s coming at least six months in advance, sometimes even up to a year,” said one leading Microsoft partner.
End of the Lumia line?
Updated market share results form Gartner shows Windows Phone has fallen to a new low of 0.6 percent globally. Last year it was 2.5 percent. Sales are on the same page, down 73 percent year-on-year to 2.3 million in 2016 Q2.
Whether this is the end of the Lumia line or the end of Microsoft’s effort in the smartphone business, remains to be seen as the Redmond based company refused to comment on the matter.
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Via Mobile News.