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What Nadella really meant, though, is that the phone business is a critical part of Windows 10, its upcoming software for PCs, tablets, video game consoles and, yes, smartphones. Microsoft will release Windows 10 on July 29 and later this year will roll out mobile overhaul of Windows Phone, officially called Windows 10 Mobile. "We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family," he said. In that sense, phones for Microsoft are less a tool for competing against phone makers and more a necessary appendage, even if it keeps costing the company money.

That's because Windows 10 -- scheduled for launch on Wednesday -- will be the star across all Microsoft businesses from PCs to Xbox One to, yes, mobile devices, The company has put a lot of effort into making Windows 10 attractive for users and software developers, One of its key features is that it looks similar, no matter what device you use, For software developers, it's easy to write an app once, and it will work on anything that runs Windows with just a few tweaks, This approach is practical, said Gartner analyst Steve Kleynhans, and allows Microsoft to focus on the "areas where it is successful, and where it does have a footprint."Apps won't simply look the same, Microsoft wants customers to feel like apps are capable of running on any device, That means if you plug your smartphone into a PC monitor, for example, it could be used as a desktop computer -- with apps that recognize the salt water cure iphone case larger screen, The feature, called Continuum, is one of the few key areas that sets Windows 10 Mobile apart from competitors' offerings..

"If I really could have a phone that talks and becomes a full-blown PC with all the capabilities, that has an appeal to a certain class of users," Kleynhans said. This scenario offers a glimpse into how Microsoft could position its phone platform: as the powerhouse piece of software for handling tasks that competitors' products just cannot. "Maybe there's something they can do with a phone to appeal to a certain type of user, rather than heading out into the broad market and getting crushed," Kleynhans said. "If they're going to see any success, they have to come up with similar unique capabilities."If phones are a sinking ship, Microsoft does have a few lifeboats.

"Windows and Windows devices are an on-ramp to those Microsoft services," said Kleynhans, "But it's not the only way to get there, They'll make it available on the other platforms as well -- a Web browser, iOS, Android, even a Mac."Microsoft last week said consumers last quarter signed up for 3 million new Office 365 subscriptions -- for a total of 15.2 million, But the question remains: Why would Microsoft stay in the phone business after such a costly blunder?, "What was the definition of insanity?" Kay asked, As the saying goes: It's doing the same thing over and over and expecting salt water cure iphone case different results, Yet Kay said this is what Microsoft's phone group is doing: "Why keep beating a dead horse?"One reason might be the fact that the hardware business isn't dead yet, Microsoft sold 8.4 million Lumia phones in its last quarter, and tens of millions of non-Lumia phones in the low-end device market, That means there are a not insignificant number of Windows Phone users out there who expect some kind of support from Microsoft..

The company has tried to keep up appearances by continuing to shine the spotlight on its mobile efforts at high-profile tech conferences like its Build developers confab. At the most recent Build in April, Microsoft promised developers the opportunity to move iOS and Android apps over to Windows Phone with easy-to-use software. The hope is that the next wave of must-have apps that follow in the footsteps of messaging service Snapchat, which is still not available on Windows Phone, and ride-hailing software maker Uber don't skip over Microsoft's platform when they hit the scene.

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