Last week Microsoft sold off the feature phone business that they acquired from Nokia to Foxconn. It made sense especially since smartphones are now the defacto phone of choice amongst many consumers, even those in emerging markets where we have affordable handsets like the Android One to choose from.
However that was simply a sign of things to come because Microsoft has since announced that they will be exiting the consumer smartphone business as well, and in the process they will be cutting another 1,850 jobs and will be taking a $950 million charge as a result of their latest decision.
According to Microsoft’s Windows and Devices head Terry Myerson in an email he sent to staff, “When I look back on our journey in mobility, we’ve done hard work and had great ideas, but have not always had the alignment needed across the company to make an impact.” He also notes that Microsoft is not out completely, but rather they are simply scaling back.
Microsoft’s focus will now be towards the business market and if hardware partners are so inclined, the company will be more than happy to license Windows 10 out to them to make devices for. We’re not sure what this means for the rumored Surface Phone, but it looks like the smartphone market will now be pretty much iOS and Android (as if it weren’t already).