Microsoft‘s CEO, Satya Nadella, has become the third leader of the tech giant to openly admit that the company made significant errors in the mobile industry. Taking over the reins from former CEO Steve Ballmer in 2014, Nadella faced the daunting task of steering Microsoft through a tumultuous period in the mobile market. One of the most notable events during his tenure was the massive write-off of $7.6 billion related to Microsoft’s acquisition of Nokia’s phone business just over a year after he assumed the role.
In a recent interview with Business Insider, Nadella conceded that Microsoft’s departure from the mobile phone business could have been better managed. When questioned about any strategic mistakes or decisions he might regret, Nadella replied:
“The decision I think a lot of people talk about – and one of the most difficult decisions I made when I became CEO — was our exit of what I’ll call the mobile phone as defined then. In retrospect, I think there could have been ways we could have made it work by perhaps reinventing the category of computing between PCs, tablets, and phones.“
It was only a few years after the Nokia phone business write-off that Microsoft officially confirmed the end of Windows Phone. Subsequently, it became evident that Windows Phone was no longer part of the company’s plans. Microsoft attempted to pivot by launching Android-powered devices like the Surface Duo and Surface Duo 2. However, without a clear successor in sight and limited software updates, the future of the Surface Duo remains uncertain.
Nadella now joins a list of Microsoft CEOs who have publicly acknowledged the company’s mobile missteps. Microsoft co-founder and former CEO Bill Gates referred to losing to Android as his “greatest mistake ever.” Google‘s acquisition of Android in 2005 for $50 million marked the beginning of Microsoft’s mobile struggles. In 2012, former Google CEO Eric Schmidt admitted that Google’s initial focus was to surpass Microsoft’s early Windows Mobile efforts.
Steve Ballmer, another former Microsoft CEO, also faced criticism for his handling of the mobile landscape. He initially underestimated the threat posed by Android and the iPhone, concentrating Microsoft’s efforts on Windows Mobile. He famously ridiculed the iPhone as “the most expensive phone in the world and it doesn’t appeal to business customers because it doesn’t have a keyboard.” In 2013, Ballmer expressed regret for not shifting the company’s focus to the phone earlier, stating, “That is the thing I regret the most.”
Over the past decade, Microsoft has redirected its attention towards developing apps for Android and iOS. The company continuously updates its Phone Link app to connect Android and even iPhone devices with Windows. Additionally, Microsoft has formed a close partnership with Samsung to ensure that its mobile Office apps come preinstalled on Samsung’s Android smartphones.
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