Microsoft Unveils New Smartphones -- Update
October 06 2015 - 2:39PM
Dow Jones News
By Shira Ovide
Microsoft Corp. announced a new lineup of computing devices of
its own design, including two new smartphones, the company's first
laptop and an updated wrist-worn device, pushing the software
company further into the hardware business.
At a press event Tuesday in New York, Microsoft unveiled two new
models of its smartphones, the Lumia 950 and Lumia 950 XL, which
are aimed at the same segment of the market as high-end smartphones
such as Apple Inc.'s iPhone. Microsoft hardware executive Panos
Panay touted features such as cameras that work well in low light,
and a special port that can be used to quickly recharge the
phones.
In a surprise, Microsoft showed off two new models in its
Surface line of convertible tablet-to-laptop computers. Microsoft
executives billed the new Surface Book as more like a laptop than
its predecessors, though the Surface Book also has a keyboard that
can be removed from the screen for use like a tablet. Microsoft
also announced an updated version of its Surface Pro model.
The string of announcements from Microsoft underscores the
company's push into computing hardware during the past three years,
starting with the first Surface device in 2012. Microsoft CEO Satya
Nadella has said the company's self-designed hardware, which has
been controversial among investors, is crucial to help Microsoft
keep pace with rapid changes in consumer technology.
The hardware business remains a challenge for Microsoft,
particularly in smartphones. At the event, Mr. Panay made a pitch
for Windows smartphones, which have less than 3% market share
globally. "If you haven't thought about these phones, wake up," he
said.
Microsoft has been seeking for five years to find success with
its smartphone operating software, and since last year with
smartphone designs it acquired along with Nokia Corp.'s
mobile-phone operation. The company this summer wrote down about
80% of the value of the $9.4 billion deal, essentially an admission
that Microsoft's smartphone strategy needed a reboot.
Terry Myerson, the executive who leads Microsoft's Windows
business, said the Lumia phones are Microsoft's effort to show the
best of Microsoft hardware and software, and serve as a model for
other companies that make computing devices powered by Windows. He
said the Lumia devices could follow the path of the Surface line, a
once money-bleeding business that has won over some computer users
and improved its financials.
Microsoft makes its own devices to "create and reinvent
categories," Mr. Myerson said at the New York event.
Microsoft said the new Surface Book, with a 13.5-inch screen,
has a starting price of $1,499. Apple Inc.'s MacBook Pro, to which
Microsoft executives compared the Surface Book, starts at $1,299
with a high-resolution 13-inch screen. Microsoft said the Surface
Book will be available for purchase Oct. 26.
Microsoft executives didn't immediately address the potential
for backlash from computer makers such as Dell Inc. that make
laptops powered by Microsoft's Windows operating system. As
Microsoft releases more of its self-designed hardware, it has the
potential to ramp up competition with the cadre of PC makers on
which Microsoft has relied for decades to generate Windows
licensing revenue.
Representatives from Microsoft, Dell, Hewlett-Packard Co. and
Lenovo Group Ltd. didn't immediately comment on the potential for
competitive clashes.
Microsoft also showed off Tuesday a second edition of the
Microsoft Band, a device worn on the wrist that combines features
of a fitness tracker with elements of a smartwatch. The new Band,
which is sleeker in shape than the first version introduced a year
ago, also has new features such as the ability to use Microsoft's
Cortana digital-voice assistant, and additional fitness monitoring
features such as the ability to track a wearer's elevation.
Write to Shira Ovide at shira.ovide@wsj.com
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(END) Dow Jones Newswires
October 06, 2015 14:24 ET (18:24 GMT)
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