‘Microsoft is clearly a challenger to Android’

Windows 10 aims to achieve unification of platform that means that users will have the same operating system for phones, tablets, notebooks and desktops.

And this will be the impetus for Microsoft Mobile Devices (India) to come ahead with its flagship devices, Ajey Mehta, its Managing Director, pointed out. So far the focus was on budget and mid-range handsets. Apart from the OS, Microsoft Mobile Devices is also rolling out a slew services and applications on top of its smartphones to regain lost ground. In an interview to BusinessLine , Mehta talks about flagship devices, the strategy surrounding the brand, and, on competition. Edited excerpts:

Microsoft’s growth came from the affordable or mid-market devices. What about flagship ones?

Yes. Our growth over the last one year has been from the affordable and mid-segments. It is the ₹5,000 to ₹15,000 price brackets, where we have had our successes. Going forward, in order to establish ourselves as a credible player, we need to have a presence in the flagship (high-end) segment. We will be rolling out our flagship devices only with Windows 10. However, there is no date (for launch of such handsets).

Too much of focus on the affordable and mid-priced segments might not be good for flagship devices. Indian handset vendors face such perception problems. What is your strategy?

That is why you need to first establish a strong consumer proposition. The most critical part for us is to establish Microsoft as a strong consumer brand. We want Microsoft as an umbrella brand covering Lumia, Skype and all the services.

This apart, the brand should have a credible presence in the flagship segment, for people to realise it. They should be willing to upgrade; invest that extra money. It is the brand that will drive the proposition.

But Microsoft is primarily considered as an enterprise brand. What changes are there in the offing?

Store re-branding is one (either as Microsoft Priority Reseller for exclusive outlets or Microsoft Mobile Reseller for multi-brand ones). We are actually re-branding close to 9,000 stores (in India), which will be completed either by month-end or in July.

Some of the service centres too will be re-branded. But we have not taken a call on them yet. A lot of advertising around (Lumia) 640 and 540 are being done. Focus is also on the TV and retail campaigns. We are actually targeting consumers now with the Microsoft brand, which was not the case previously.

We have found that people consider Microsoft as an extremely respectable brand and there is a potential for it being loved by the consumers. So when Lumia 535 (the first Microsoft branded device) came out, one of the top three drivers for it was the brand name.

Considering the price levels at which smartphones are available, there is very little scope for feature phones. Do you intend to remain there?

For us the feature (phone) segment is very important. We see that at a sizable volume and scale in the future.

Feature phone as a segment is where we can start to introduce Microsoft services to the consumer.

Currently, of the 400 million-odd internet users, some 70-80 per cent is through mobile phones.

As the smartphone users increase, there will be people who will for the first time access the internet, from their handsets. All these first time users (of internet) will come from the feature phone segment.

So, if we can actually start socialising our Microsoft services and applications with consumers while they have a feature phone, then we can upgrade them to a Windows smartphone and hope they will stay there. That’s a huge segment where we see massive future potential.

For now, the feature phone segment will continue to be branded as Nokia. We have not taken a call on whether to re-brand them or not.

How is Microsoft placed with respect to competitors like Android?

We are clearly a challenger to Android. Microsoft Mobiles in India is planning to aggressively grow the ecosystem, especially the Windows phone one. And we have seen a lot of success with the launch of new devices over the last few months.

In terms of OEM (handset) market share, you lost out the leadership position. Your comments.

Our focus is on growing the business. There are a large number of players in the market and some competitors are doing better than us.

We have our signature services like ‘Skype’, ‘Cortana’, ‘Bing’, ‘Office365’. We are in the business of delivering services and mobile experience.

Yes, it is a competitive market. And, we believe that we have a strong consumer offering. However, I can tell you that our market share has been growing.

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