January Brings a Flurry of Activity for Microsoft: Key Updates
InMobi could boost Microsoft’s presence in the smartphone space
So far in this series, we’ve discussed Microsoft’s (MSFT) recently announced acquisitions in 2016. We’ve also touched upon strong rumors of InMobi becoming a part of Microsoft.
The data and analytics collected by InMobi could provide Microsoft with deeper insight on consumer demand in India (INDA) and China (MCHI), where InMobi is quite popular. Also, as smartphone penetration is rapidly increasing in these regions, InMobi could enhance Microsoft’s presence in the smartphone space, which is targeted towards emerging markets (EEM).
Microsoft’s recently launched Lumia 950 and Lumia 950 XL were the first smartphones to have the company’s recent Windows 10 Mobile operating system. However, the launch of Windows 10 and Lumia phones did little to improve the company’s foothold in the smartphone industry.
Through its Windows 10 Mobile, Microsoft aims to compete with Apple’s (AAPL) iOS and Google’s (GOOGL) Android. Though Microsoft has announced the release of web tools that enable developers to migrate apps from Apple devices and Google’s Android devices onto Windows smartphones, PCs (personal computers), tablets, and Xbox consoles, it has yet to happen. Microsoft wants Windows 10 to become a common platform for all computing devices.
China has the largest smartphone market
China will remain the largest smartphone market in the world, but India’s market is growing fast enough to secure the second spot in this market by 2017. India could overtake the US smartphone market by 2017, according to a report from Strategy Analytics and as the above chart shows.
InMobi provides an avenue to Microsoft to not only enhance its presence in the smartphone space but also in China, a country actively pursued by tech players. Recently Microsoft proposed a joint venture to provide a tailored Windows 10 OS (operating system) to China’s government. Realizing India’s potential in the smartphone space in August 2015, Foxconn announced its intention to invest $5 billion in the country over the next five years.
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