Microsoft Corporation (NASDAQ:MSFT): Free Apps To Expand

Boston, MA, 04/10/2014  (usastockreport) – Microsoft Corporation (NASDAQ:MSFT) will offer its Windows operating system for free to smartphones and tablets makers. The Company aims to expand its business in emerging markets and compete with Google Inc (NASDAQ:GOOG)’s Android services.

 Why so

Both Android and iOS dominates the smartphones operating systems and accounts more than 90% of total OS market. In contrast, Windows OS represents only 3% of total global smartphone and 2% of the tablet market in 2013.

Microsoft experiences competition on both mobile and tablets segment due to increasing adoption of Android systems in phones and tablets. The success of free Android creates low penetration for paid products like Windows OS that charge $5-$15 per device. Therefore, the Company loses its position in mobile computing segment.

Advantage

Like Android, Microsoft Corporation (NASDAQ:MSFT) is to offer free services across smartphones to increase market share. The Company is now partnering with Nokia that has already good presence in Europe and emerging market. In both the regions, Microsoft is gaining market share for Windows OS in smartphones.

The Company reported 10.1% market share of smartphone OS in Europe for the three months ended in January 2014. Though Android dominates the market, but, growing presence will further improve.

The move will increase the user base for the mobile version of Windows with cloud based services such as Office and Skype.

To survive

Microsoft expects growth over Windows OS in fast growing smartphone market. So, it follows the Android’s strategy and offer free services for mobile computing. Moreover, the Company provides additional services to smartphone users besides Windows OS to improve its market presence.

Microsoft Corporation (NASDAQ:MSFT) has developed new version of smartphone software (Windows Phone 8.1) in new phones. The Company also develops phone assistant services through Cortana. It will become a standard feature of Windows phones to compete against Apple’s Siri.

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