Microsoft Lumia: The Ambitious Rise and Unfortunate End of Microsoft’s Smartphone Journey
“Failing Forward” is a series of case studies exploring product failures from various tech companies.
Within the vast realm of smartphones, the industry has been shaped by the enduring presence of the “Big Tech” giants, each leaving an indelible mark with their flagship devices. Apple’s iconic iPhone, Google’s innovative Pixel, Amazon’s short-lived Fire Phone, and Microsoft’s ambitious Lumia have all sought to capture the hearts and minds of consumers. While the first two have solidified their status as household names, the Fire Phone and Microsoft Lumia faced various challenges that ultimately led to their downfall.
In my previous article, I explored the story of the Fire Phone and its journey toward failure. Today, my focus shifts to the rise and fall of Microsoft Lumia. Originally designed and marketed by Nokia, and later by Microsoft Mobile, the Lumia series ran on the Windows Phone operating system. In September 2013, Microsoft announced its purchase of Nokia’s mobile device business, leading to the release of the first Microsoft-branded Lumia device one year later. However, despite the initial promise, Lumia eventually met its discontinuation in 2016.
If you were in the 2000s, when personal digital assistants (PDAs) dominated the portable device market, you may have heard of Windows Embedded Compact (Windows CE) and Windows Mobile, major operating systems for portable devices. Windows Mobile’s smartphone market share peaked at 42% U.S. market share in 2007 but declined year after year. Subsequently, Windows Phone, a new mobile operating system, emerged with a brand new user interface design.
In 2011, Microsoft began a partnership with Nokia, the largest vendor of mobile phones in the world during the 2000s. Windows Phone became the primary smartphone operating system for Nokia. However, this partnership between the largest mobile phone devices brand and the largest OS development giant eventually failed after a few years. This raises the question: how and why did this happen?
Turning “Maldives” to “Photon”
Before starting with Microsoft Lumia, let’s first explore the history of Microsoft’s mobile operating system development, which traces back to the early 1990s when Windows CE was initially developed. This operating system was designed to run pocket-size computers, primarily PDAs at that time, and it brought a user-friendly Windows 95 interface to mobile devices, laying the foundation for Microsoft’s later mobile products.
In 2000, Windows Mobile made its appearance as the Pocket PC 2000 operating system, serving as a subset of platforms based on the Windows CE underpinning, catering to general PDA use. Over the years, Windows Mobile continued to evolve, with new versions released every 1–2 years, eventually reaching Windows Mobile 6.5. However, Windows Mobile 7, codenamed “Maldives,” faced cancellation. In response, Microsoft restructured the Windows Mobile group and began the development of a new mobile operating system — Windows Phone.
Thus, Windows Phone 7, codenamed “Photon,” was represented by the tech giant as it entered the smartphone market battle. Its earlier hardware partners included Dell, HTC, LG, and Samsung. Later, Nokia, Acer, ZTE, and more OEMs joined. Moreover, Microsoft and Nokia introduced a partnership in 2011, announcing that Windows Phone would become the primary smartphone operating system for Nokia. They aimed to compete with Android and iOS and unveiled the Nokia Lumia series.
Rebranding
In 2013, Microsoft made a significant announcement, revealing its plan to acquire Nokia’s mobile device business, just two years after announcing their partnership. Subsequently, one year later, Microsoft officially declared that all future Lumia models would carry only the name and logo of Microsoft. In November 2014, the company introduced its first self-branded phone, the Microsoft Lumia 535, running on Windows Phone 8.1. Over the next year and a half, Microsoft unveiled ten more Lumia devices across four different series.
However, by 2016, the Windows Phone market share had decreased below 1%, leading Microsoft to undertake a reorganization of its mobile department. Consequently, Microsoft sold Nokia’s feature phone business to HMD Global and its distribution and manufacturing assets to Foxconn. This move paved the way for HMD Global and FIH to announce their collaboration in developing and manufacturing new devices under the iconic Nokia trademark.
In October 2017, Microsoft executive Joe Belfiore delivered a revelation, stating that the company would no longer develop new phone hardware. Furthermore, he announced that Windows 10 Mobile, the successor to Windows Phone 8.1, would only receive maintenance releases and patches from that point forward. This decision came as a result of the platform’s low market share and Microsoft’s decision to shift away from its mobile business.
Microsoft Lumia Series
Within the Microsoft Lumia lineup, there are four series that cater to various segments, ranging from low-end to flagship devices. The first in the series is the entry-level Microsoft Lumia 535, marking the first appearance of Microsoft-branded smartphones. With 1 GB of RAM and 8 GB of built-in storage, this device is powered by a quad-core 1.2 GHz Snapdragon 200 CPU and Adreno 302 GPU.
The 400 series followed suit with the introduction of the Microsoft Lumia 435, designed to compete with Google’s Android One. It was announced shortly after the Lumia 535, featuring a smaller display and battery size.
Next up, the 600 series showcased devices like the Microsoft Lumia 640 and 640 XL, which targeted emerging markets and offered lower-cost options in developed markets. The Lumia 640 XL, being a phablet-type version, boasted a larger display and higher resolution cameras compared to the Lumia 640.
Lastly, the Series 900 is specifically designed for high-end products. Among them were the Lumia 950 and 950 XL, representing Microsoft Mobile’s first and last Lumia flagship devices. The Lumia 950 was powered by a Qualcomm Snapdragon 808, combining two 1.82 GHz Cortex-A57 and four 1.44 GHz Cortex-A53 cores, with an Adreno 418 GPU and 3 GB of LPDDR3 RAM. On the other hand, the Lumia 950 XL offered a better processing ability with a Qualcomm Snapdragon 810, which combined four 2 GHz Cortex-A57 and four 1.5 GHz Cortex-A53 cores.
Overall, Lumia hardware remained relatively consistent without undergoing major design changes compared to other smartphone brands. The uniqueness of Lumia devices was primarily attributed to their operating system design, which differentiated them from other competitors. However, this aspect has also been subject to criticism. For example, while the Lumia 950 XL received praise for its high-end specifications and camera performance, many reviewers highlighted the less comprehensive app ecosystem compared to Android or iOS. Some reviewers recommended the Microsoft Lumia only to those who prefer the Windows Phone OS over Android, as stronger alternatives could be found for the same price.
Windows Phone and the Market
Windows Phone indeed featured a unique user interface based on Microsoft’s “Metro” design language, which included Live Tiles on the Start screen. However, despite these distinctive features, there were several reasons why it failed to gain significant traction in the market:
App Ecosystem
In 2013, Microsoft launched YouTube for Windows Phone devices, but Google blocked the app from working on these devices multiple times. This is only one example, and the lack of a diverse and comprehensive app ecosystem was a major hindrance for Windows Phone. It made it challenging for consumers to find essential and familiar apps, ultimately impacting its appeal.
Developer Support
Developers favored iOS and Android due to their larger user bases, leading to a shortage of popular apps on the Windows Phone platform. The limited developer support contributed to the app ecosystem issue. With fewer apps available, users faced difficulties accessing their favorite services and applications. Additionally, the lack of regular app updates and community support compared to other OS devices created a less satisfying user experience.
Brand Loyalty
Many consumers were already invested in the iOS or Android ecosystems, owning other devices like tablets and smartwatches within these ecosystems. Switching to Windows Phone would have required them to abandon their existing ecosystem and start anew. This loyalty to established platforms made it difficult for Windows Phone to attract users. Furthermore, the lack of consistent flagship offerings in comparison to high-end iPhones or Android smartphones weakened its appeal to tech enthusiasts and early adopters. While the Series 900 introduced Microsoft’s own brand of smartphones, it was too late to significantly impact the market share.
By 2016, Windows Phone’s market share had dropped to below 1%, signaling a significant loss of user base and developer interest. In response to the declining market share and challenges faced by Windows Phone, Microsoft decided to reorganize its mobile department and shift its focus away from developing new phone hardware. Windows 10 Mobile, the successor to Windows Phone 8.1, only received maintenance releases and patches after October 2017, signaling Microsoft’s departure from the mobile device market.
Ultimately, despite its unique user interface and distinct features, Windows Phone struggled to gain significant market share and compete effectively against the dominant iOS and Android ecosystems.
Although Microsoft faced challenges in the smartphone market and eventually withdrew from it, the company continued to excel in other hardware development ventures. Their Surface lineup of devices, including laptops and tablets, garnered praise for their innovative designs and performance. Additionally, the HoloLens, a mixed-reality headset, showcased Microsoft’s dedication to pushing the boundaries of technology.
Furthermore, Microsoft’s Metro design language, which was originally introduced with Windows Phone, found its way into other products and platforms. Windows 8, the successor to Windows 7, adopted the Metro design principles, offering users a fresh and visually appealing interface. The Live Tiles concept, which was a hallmark feature of Windows Phone’s Start screen, inspired Apple’s iOS 14 home screen update. Apple brought back the idea of interactive and customizable widgets, similar to Live Tiles, allowing users to personalize their home screens with dynamic information and quick access to apps.
Despite the challenges in the smartphone market, Microsoft’s legacy in hardware development and design continues to influence the industry positively. Their innovative approach to user interfaces and hardware design has left a lasting impact, and their products remain popular among consumers and professionals alike.
If you found the Microsoft Lumia story interesting, you might also enjoy reading my two other articles about the Fire Phone and Essential Phone, the failures of two smartphones developed by famous founders — Jeff Bezos and Andy Rubin. Happy reading!
Reference
- Versions of Windows CE / Windows Mobile by Chris De Herrera
- The Real Reason Windows Phone Failed Spectacularly by History Computer
- Apple’s new iOS 14 home screen brings Windows Phone Live Tiles back to life by the Verge
- Microsoft Wiki
