Apps, apps, apps! That is the main challenge that Microsoft and Nokia, who are trying to claw back marketshare from Apple Inc's iPhone and Google's Android in the red hot smartphone market, face now.
And so far the going does not look too good for the challengers and their warhorse Windows Phone platform.
Apps, short for applications, are small pieces of software that do useful or fun things on cellphones. The huge number and variety of apps in Apple and Google stores are a key factor that has helped the companies emerge as dominant players in the lucrative smartphone market.
On Monday, Microsoft and Nokia said they would invest a total of 18 million euros ($23.9 million) into a new mobile application development program, AppCampus, at Helsinki's Aalto University during the next three years.
The move underscores the seriousness with which the two companies view the problem.
Most popular global apps such as Facebook, Twitter, Foursquare and Evernote are available on the Windows Phone platform, but makers of many niche or local apps have shied away.
The number of apps available in the Windows Phone Marketplace now exceeds 65,000, surpassing those at another rival Research in Motion's BlackBerry store. But that is still far short of around half a million apps available on the Apple App Store and Google Play, according to app researcher Distimo.
Worse still, only 37 percent of developers are keen to make apps for Windows Phone, showed the latest IDC/Appcelerator survey. That number, slightly down from the previous survey, compared with the 89 percent interested in iPhone and 79 percent in Android phones.
"Mobile developers' interest for the Windows platform has been for the least very lukewarm over the last two years, with no sign of improvement," Sanford C. Bernstein analyst Pierre Ferragu said.
Microsoft launched its latest Windows Phone 7.5 operating system, Mango, last year to good reviews. And Nokia, struggling to reclaim smartphone handset marketshare from nimbler rivals such as Apple and Samsung Electronics, l au nched its Lumia line of phones running on Mango late last year.
Lumia phones look sleek and spiffy, with live, tiled icons that automatically update news, weather, pictures and social feeds. But the fewer number of apps and their quality are hobbling the phones' appeal to customers.
Finn Christian Lindholm, a Helsinki-based partner at digital design agency Fjord, believes the latest Windows Phones are interesting enough to challenge the iPhone.
The key to both companies' strategy to gain in the smartphone market would be how they break out of the vicious cycle -- the low sales of the Windows phones holding back app makers, and consumers shunning the phones for lack of the apps they are accustomed to.
"They need to break the Catch-22 before there is enough volume and natural pull," Lindholm said.
SHRINKING MARKETSHARE
Monday's announcement by Microsoft and Nokia is an attempt to find new solutions to the problem, in addition to paying third-party developers for the apps.
They hope the program, which will provide support, coaching and also funding for app makers, will boost the number of unique and outstanding apps on Windows Phone.
It's an uphill road for a new platform. Microsoft's share of the smartphone market fell to just 2 percent last quarter, from 3 percent a year ago and 13 percent four years earlier, according to Strategy Analytics.
Last month, Windows Phone lost also its highly respected chief of developer relations, Brandon Watson, who left for Amazon.com Inc, which is taking on established players in the mobile devices market with its Kindle e-readers.
Apart from Nokia, which has a lot riding on the platform, Microsoft has little support from other handset makers, such as Samsung, which are clearly focused on their Android offerings.
That is not surprising as the other handset makers are struggling to sell their Windows Phone models. They, unlike Nokia, can only dream of payments from Microsoft for promoting and supporting its software. Last quarter, Microsoft paid $250 million to Nokia on this account.
NO TALKING TOM CAT
On Friday, Rovio, the maker of the wildly popular Angry Birds game, created a scare when media reports said the latest version of the game -- Angry Birds Space -- will skip the Windows platform.
10:00 PM
The Mobile


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