The company is cutting approximately 1850 jobs around the world and taking a $US950 million impairment charge on its smartphone hardware business, and this marks effectively the final nail in the coffin of the once powerful Nokia.
Microsoft has come up with new minimum hardware requirements for devices to run Windows 10 Mobile and Windows 10 for PCs, as the company braces itself to launch the mega anniversary update this summer.
“We are focusing our phone efforts where we have differentiation”, said chief executive Satya Nadella in a statement.
According to the report, the drop in sales can be attributed to the lack of new Lumia devices as well as Microsoft’s plans to sell its feature phone business to Foxconn for U.S. $350 million.
Microsoft is continuing its retreat from the mobile phone business with massive job cuts in its devices division.
According to Sunday Express, the Surface Phone has already been green-lit by Microsoft way back in December 2015 and could see a release in mid-2016.
Gartner estimates that just 2.4 million Windows Phone devices were sold in the first quarter, giving Microsoft 0.7 per cent of the market.
Increasingly, companies are procuring phones for employees rather than letting workers bring their own devices onto corporate networks, said International Data Corp. analyst John Delaney.
The upgrade could still be cancelled, when the scheduled time for it to begin appeared, Microsoft said.
For people who are keen to know even more, the Windows Insider program allows users to keep up with the latest announcements, rate the different versions of Windows 10 and participate in feedback quests, earning badges in the process.
Microsoft has developed a new app which makes it easier for people to complain about the operating system.
It’s no secret that Microsoft is struggling to compete against iOS and Android. It originally offered Windows Mobile, an operating system for mobile phones aimed at business users, in 2003.
May 10 was Patch Tuesday and Microsoft released this month’s security updates for a wide array of its software solutions including Windows, Office, Internet Explore and Edge. “We’ve done hard work and had great ideas, but have not always had the alignment needed across the company to make an impact”.