Microsoft has ambitious plans when it comes to the largest market in the world: outselling iPhones. Simon Leung, Microsoft's chief executive for the Greater China region explained a couple of days ago Microsoft's strategy for taking over the Chinese smartphone market.
However, he didn't offer any further details and was reluctant to mention a timeline for this goal. At the Windows Phone 7.5 launch event in Beijing, Microsoft officials detailed the aggressive pricing strategy that would help the company gain a better position on the market and in the consumers' heart.
So far, Microsoft's mobile operating system has only 2.8 per cent of the market, according to research firm Canalys.
Dropping down the price might prove to be effective, considering that a smartphone running on the Windows Phone currently costs $400 to $450 - and that is without a carrier contract.
Analysts believe that manufacturers should get the prices to half of the current amount, in order to get a true competitive edge. Catalys analyst Nicole Peng pointed out that China is a smartphone market still underserved with significant growth potential. "There is still a lot of room for China's smartphone vendors to grow, so I don't think it's too late for Microsoft," suggested Nicole Peng.