Windows Mobile - where are we today and where are we going?

Since the launch of iMate mid June 2004, the first Windows Mobile x Smartphone, we have seen very little from Microsoft in terms of marketing the mobile operating system. Up and until now the awareness and penetration of Windows Mobile has been low. Are Microsoft's ISV partners taking Windows Mobile to market? Again, very few cases of this fact are evident.

So who are the players in the market and what have they been up to?

Cell phone manufacturers/distributors are currently the biggest advocates of Windows Mobile and have pretty much been left to their own devices. Leaf International Communications with their range of HTC Windows Mobile 5/6 devices seem to be everywhere! Advertising during prime time television slots such as Grey's Anatomy for the last 8 months or so, has positioned Leaf as "Windows Mobile". Is this a good thing for Leaf? Yes and No. Yes, as when one thinks of Windows Mobile one thinks of HTC. Owning the Windows Mobile term in the industry provides Leaf with tremendous brand credibility and the power of brad association. No, as they have been educating the market on Windows Mobile, making it somewhat easier for later entrants. However first mover advantage, if sustained will keep Leaf at the top. I am sure Microsoft is only too happy to have Leaf do all the leg work.

Those that took the early plunge into Windows Mobile Smartphone’s/Pocket PC's will remember that Leaf used to distribute iMate. So how has iMate been doing? Not very well it seems. There has been very little advertising from Insync Mobile, the official distributors, and quite honestly their product range is inferior to Leaf's HTC's. Insync’s relationship with Adcheck and MTN seems to be keeping them in the game, but for how much longer?

Moving along the value chain, Mobile Network Operators (MNO) and mobile software development companies have positioned themselves as the major players in the Windows Mobile ecosystem, more specifically the Enterprise Mobility market using Windows Mobile platforms. Mobile software development companies can be categorised as follows: those that focus primarily on mobile application development (e.g. Adcheck, Mobile at Work and 7 Days Technologies) and those that are extending their existing Microsoft development skills into the mobile application space. Partnerships between the MNO and software development companies seem to be the key to their success, although we have seen no partnerships with key Microsoft ISV’s, such as Di-data, BCX, etc. As the MNO own the billing relationship and the network on which these mobile applications run they are currently in the strongest position. However, disintermediation by non GSM network providers will weaken their position.

System Integrators (e.g. BCX, Didata, Bytes Technology Group) are very quiet. Convergence seems to be consuming much of these organizations attention and efforts. VOIP using Windows Mobile WIFI enabled devices has garnered some interest.

The Future

So what does the future hold for the players in the Windows Mobile ecosystem? Here are some of my predictions…

• Microsoft will eventually come to the party and position themselves as the rightful owners. When they do it, they will do it properly and we will notice. Expect to see exiting products augmented with mobility components.


• Leaf / HTC will dominate the windows mobile device market, extending their first mover advantage into other related product lines and using the Windows Mobile platform to deliver other products/services. Already we have seen this with Leaf, who has made available a free digital map on their devices. HTC will experience increasing competition as the likes of Motorola and Samsung pursue this market more aggressively. However, HTC only manufacturers Windows Mobile devices, where as Samsung and Motorola only have one model each in market and will remain focused on their other product lines. iMate will disappear. Globally they are losing ground.


• Mobile Network operators will increase their presence in the Windows Mobile market, moving beyond their position as mere resellers of Windows Mobile devices as smart devices, to providing Enterprise Mobility solutions on the Windows Mobile platform. MTN's seems to have a lead on Vodacom . Through their partnering with mobile application development companies they have positioned themselves well to take a advantage of a growing Enterprise Mobility market.


• Microsoft ISV's will wake up to the potential to extend their offerings into the mobile application arena, increasing their revenue opportunities and providing greater value to their customers. Their success will depend largely on Microsoft’s strategy on Windows Mobile.


• As the number of mobile devices used in organizations increases, System Integrators and IT Outsourcing Companies are perfectly positioned to extend their solution development and outsourced management services into the mobile arena. Mobile CRM, mobile sales force and mobile field force automation applications, combined with device management solutions will be key areas of opportunity. We will see an increase in the deployment of mobile solutions in house before these companies move strongly into customer deployments. Their software development, system integration and networking skills combined with their VANS licenses (i.e owning their own wireless networks) will result in these companies competing head on head with the MNO. MNO beware.

It’s still early days for the Windows Mobile market in South Africa and one thing is for certain, it will all change and very quickly. So hedge your bets and keep your eyes and ears open.