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Mike Elgan's picture
Mike Elgan

The World Is My Office

More posts | Read bio

February 11, 2008 - 11:42 A.M.

Microsoft succumbs to Apple envy, buys Danger

13 comments

SANTA BARBARA, CALIF. -- Microsoft was too busy to read its rejection letter from Yahoo this morning, as it announced its intention to buy Danger Inc., the maker of the popular Sidekick smart phone. The move suggests that the Redmond Giant plans to compete with its partners in the handset business.

Analysts announced this week that the iPhone, all by itself, was used more for Web surfing than all Microsoft's Windows Mobile partners combined. And, of course, no single Windows Mobile-based phone has come anywhere near the unit sales of Apple's iPhone. Microsoft has always intended to dominate the mobile phone operating space like it has done in the PC market.

Microsoft has apparently decided that the partnership route doesn't work, and that the only way to gain market share against the likes of Apple and RIM, et al, is to be more like Apple and make both the hardware and the software.

Also: Any traction Windows Mobile devices have gained have been primarily in the business market, with a smattering of enthusiasts. Danger, on the other hand, attracts young users, especially teenagers.

The data access model on Danger is significantly different from most Windows Mobile smart phones. Danger provides a Web interface to personal data, rather than storing it all exclusively on the device.

In addition to services, applications, the OS and hardware, Danger also supports its Sidekick line with a software development platform.

Microsoft didn't suggest that it would rip out the existing Sidekick OS and install Windows Mobile, but did hint to reporters at the installation of Microsoft applications and the use of Microsoft services on the device.

Danger currently has about 1 million mobile data subscribers.

One Danger co-founder, Andy Rubin, is currently Google's director of mobile platforms.

Danger is privately held and based in Palo Alto, Calif. The terms of the deal were not announced.

What People Are Saying

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Let me tell you about innovation.

Submitted by Anonymous on February 12, 2008 - 1:00 P.M.

Just today on a subway I opened a copy of METRO and laughed at how many different varieties of mobile phones are advertised on T-Mobile store ad page. And yet all these attempts are nothing comparing to the success of an iPhone. Just one phone, from one company. Until Microsoft hires a man with a vision anywhere near the one of Steve Jobs, or Sergey Brin and Co, they will continue losing battle after battle. I visited Redmond MS headquarters and took a tour of what they call a "house of the future". And indeed it would be a house of the future. If we were in 1985. Right then and there I think I lost my faith in Microsoft being able to deliver a product that would make me say "Wow". Next day I visited Apple store in Seattle (first time in my life), and there it was. That "Wow".

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Actually, Apple iPhone

Submitted by Anonymous on February 15, 2008 - 4:54 P.M.

Actually, Apple iPhone outdid all of Windoze mobile browser share months ago.

Anyone can see how much better iPhone is than other phones. Anyone can see how much better iPod is than any other MP3 player. But to see that Apple's OS is also that much better than the competition, you have to actually use it and work with it a bit. Then though, it's quite obvious.

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Plays for Sure

Submitted by Quinn the Eskimo on February 12, 2008 - 1:29 A.M.

Does Danger do Zune Store?

No?

Doomed.

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SideKick Purchase

Submitted by lrd on February 11, 2008 - 9:05 P.M.

Hey, if we depended on innovation from Microsoft, we'd be all using DOS 2007 right now.

C:\innovation\not a strong suit\at a company\that copies\everybody\elses\work

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I think Microsoft is buying IP

Submitted by Satoshi on February 11, 2008 - 8:51 P.M.

The market Danger owns is too small to be relevant in this acquisition, so as the service. I think Microsoft is buying its IPs, preparing the battle with android. See my blog entry for detail.

http://satoshi.blogs.com/uie/2008/02/will-microsoft.html

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“Analysts announced this

Submitted by Fact Checker on February 11, 2008 - 6:22 P.M.

“Analysts announced this week that the iPhone, all by itself, was outselling all Microsoft's Windows Mobile partners combined.”

Mike, did you link to the wrong article or just not read the article? Damned sloppy.

That article says they reported 50% more traffic from browsers identifying the OS as iPhone over Windows mobile and has nothing to do with sales (and only accounts for 2.8% of iPhone users, surely more than that use it to surf).

Engadget do have the numbers though, Windows Mobile unit sales outselling iPhone 3 to 1 (http://www.engadget.com/2008/02/11/whats-an-iphone-14-3m-windows-mobile-phones-sold-in-the-past-s/).

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Aaaah, yes...

Submitted by D9 on February 11, 2008 - 2:39 P.M.

Another fine example of Microsoft innovation and technological leadership...those guys are such geniuses!!

/

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Is this what they mean by...

Submitted by Matt on February 11, 2008 - 8:02 P.M.

Web too-point-OH!

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Aaaah, no...

Submitted by Anonymous on February 11, 2008 - 5:26 P.M.

are you kidding me Microsoft have no innovation, they now fail at what they do. There stupid.

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Aaaah, there...

Submitted by Anonymous on February 11, 2008 - 7:37 P.M.

>There stupid.

No, there (me-point-at-you) stupid.

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