Microsoft is scaling back Windows 10 Mobile — here's how that will impact its mobile strategy (MSFT)

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Microsoft has stopped developing new hardware and features for Windows 10 Mobile after struggling to convince app developers to build for the platform, according to a series of tweets from Microsoft's Vice President of Windows Experience Joe Belfiore.

Despite offering to pay developers and write apps for them, the volume of users on the platform was too low to generate investment, Belfiore said.

Microsoft is waging a lost battle against Android and iOS in the global smartphone market. Android and iOS combined accounted for roughly 99.7% of all smartphones shipped globally as of Q1 2017. This left the Windows Phone OS with only a 0.1% share of the global smartphone OS market.

Microsoft’s new strategy will focus on making its services available on the two leading platforms:

Microsoft is bringing new Edge browser apps to iOS and Android. By bringing the Edge experience to these operating systems, Microsoft can help ensure Windows PC remains relevant in an increasingly mobile-dominated world.
Skype now features built-in Cortana support for iOS and Android. The Cortana feature offers Skype users suggested chat responses as well as recommendations, like movie tickets or restaurants, based on users' conversations. It also enables users to chat directly with the voice assistant.

However, relying on third-party platforms could present challenges for Microsoft down the road. That’s because platforms like Apple and Google are capable of developing applications similar to Microsoft's. And many consumers are loyal to their chosen ecosystem, which could make them less likely to switch between Microsoft’s offerings and the ones baked into iOS and Android devices.

Moreover, as mobile continues to chew up digital time spent, Microsoft’s strategy could be at risk of losing its PC-console user base. Although Windows remains the primary OS in mature markets such as the US, Android leads in mobile-first emerging markets. As mature markets continue on a mobile-first trajectory, Microsoft could face a similar situation in these regions.

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