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"It is clear that Microsoft is not willing to lose money indefinitely building phones that have little chance of succeeding," said Avi Greengart, an analyst for Current Analysis. While Microsoft is in retreat, the company is not exiting the smartphone business. The company plans to focus on three key segments: business, value and flagship,Microsoft CEO Satya Nadella said in an e-mail to employees. It will, however, significantly reduce the number of Lumia-branded devices it produces each year, and leave markets where its products are not selling well, according to a person familiar with the company's thinking.

"We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family," Nadella said, Microsoft likely won't follow the Apple playbook of offering just one or two devices at a single event each year or Google's model of releasing a single Nexus smartphone each year, But the company will cut back on the models it releases, In 2014, Microsoft and Nokia released roughly nine speck presidio iphone x tough case - black devices, with different variants depending on region and carrier..

While the sheer amount of layoffs that have occurred -- 18,000 jobs were cut last year -- suggest a crippling of its resources, the company believes it has the manpower and research and development chops to maintain its phone business. "They can't get out of phones -- it's too important," said Ken Dulaney, an analyst at Gartner. Microsoft telegraphed a shake-up in the smartphone business last month after the company jettisoned Stephen Elop, the head of the devices group, as well as his lieutenant, Jo Harlow. The devices group was brought under Terry Myerson, who also runs the Windows group.

The devices group, formed when Microsoft closed its acquisition of the Nokia assets in April 2014, had kept a low profile for the past year, releasing only a number of speck presidio iphone x tough case - black budget-friendly smartphones, When asked about a high-end, or flagship, smartphone, executives would only offer a tease, Microsoft still plans to offer a flagship smartphone by the end of the year, the person said, The low-profile strategy didn't help raise the profile of Windows Phone for consumers, While customers in emerging markets and extremely budget-conscious folks in more developed market sought out Lumia phones for their value, the operating system never went mainstream like iOS or Android..

"The lack of a high end device in market today means they are not competing with iPhone 6 and Android devices like Samsung's Galaxy S6 - so the hardware approach is lagging," said Chris Hazelton, an analyst at 451 Research. Even if a Lumia flagship doesn't rack up the same sales as an iPhone, it's important that Microsoft be in the game with the kind of broad campaign and carrier push that a Lumia 1020 received at AT&T. The low profile was a primary reason Microsoft's vendor partners, which have eagerly lined up to build Windows 10 PCs and laptops, have been reluctant to commit to a Windows-powered smartphone. While partners like Samsung and HTC have produced Windows mobile devices, there is little enthusiasm behind them.

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