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A Short Note On The Cell Phone Industry

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Although Microsoft was slow to join the cell phone war, and was unsuccessful in partaking in the market even with theier $7.2MM purchased of Nokia in 2013, our team believes the cell phone market is now ready for a Microsoft Surface cell phone. After all, Microsoft holds a solid reputation in operating and security software shouldn’t they be able to produce a desirable phone? Our team believes it can. The cell phone industry is dynamic and thriving market that offers a place to innovation. Despite the losses already assumed by Microsoft which includes, assumed infringement liabilities by the purchase of the Nokia cell phone line, and the added expenses in the amount of $780 million under the Phone Hardware Restructuring Plan (SEC, 10Q dated 09/2016), our team feels Microsoft is in a good position to release a desirable and successful phone line. Furthermore, our team also believes that Microsoft invested in the market to “leave the table” at this point. As Leo Sun from TMSunLion said: “it was reported that Microsoft 's phone hardware revenue plunged 46% annually in constant currency terms due to the downsizing of the business and market share losses. Meanwhile, Surface device sales rose 61%, thanks to strong demand for the Surface Pro 4 and Surface Book. That 's probably why Surface VP Panos Panay 's team reportedly inherited the Surface Phone project last year -- launching future mobile devices under the Surface banner instead of the Lumia one might generate

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