Is Microsoft crazy to offer $100,000 for Windows Phone 8 apps?

The short answer: no.

The longer answer is that they have to do something. When Microsoft first made the jump into the smartphone arena with their Windows Phone 7 operating system, it’s likely that they knew they had a tough road to climb and that they would be the third option for most phone buyers, at least in the beginning. They probably weren’t prepared to be such a distant third with iOS and Android phones taking more than the lion’s share of the pot.

Windows Phone 8 hasn’t been as well received as they had hoped, either. They’ve been paying developers directly to produce apps for them – $100 per app with a $2000 cap – but it hasn’t been enough to move the needle significantly. They had to get aggressive. According to Business Insider:

Word is that Microsoft is offering some developers way more than that, as much $100,000 to bring their apps to Windows Phone 8. This tidbit was first reported by Bloomberg’s Ashlee Vance, but its been confirmed by two sources contacted by Business Insider.

Some would say it’s a desperate move. Others will see that they should have been this aggressive for a long time, now. Developers want their products to be seen and used. Right now, Apple and Google have their attention because they have the consumers’ attention. For Microsoft to make a significant dent, they need to do more than simple comparison and challenges. They need buzz. They need hype. They need developers that are putting their sexiest products on the market through the Windows Phone 8 marketplace before they take it to Android or iOS.

We’ll see if this pans out to get them anywhere close to the numbers that Google and Apple are putting out. If it doesn’t, Microsoft should start talking to BlackBerry sooner rather than later.

The video-sharing war: Microsoft battles Google for equal YouTube rights

Since January, Google and Microsoft have been clawing each other’s eyes out over YouTube. The trouble started way back in 2010 when “Google blocked Microsoft’s new Windows Phones from operating properly with YouTube,” according an article on WP Central.

YouTube, bought by Google in 2006, is usually offered on smartphones with all the typical features, such as searching through video categories, rating videos, finding favorites. However, the problem began to arise when Microsoft introduced the new Windows Phones.

Google blocked these fancy features from working with the Windows Phone version of the YouTube app. The article says it’s “basically just a browser displaying YouTube’s mobile Web site.” It severely lacks the “functionality offered on competing phones.”

According to another article on Venture Beat, Microsoft planned to retaliate by creating a new “high quality” version of the YouTube app. It would be similar to the current app running on Android and iOS powered smartphones.

While this would make things more equal for everyone, Google alleged,“the app enables users to download YouTube videos, prevents ads from being shown, and plays videos whose owners have set to only play on certain platforms.” Unfortunately, this violates a whole mess of terms and conditions.

The real threat comes against Google’s branding guidelines. The multi billion-dollar company tries incredibly hard to uphold a good brand reputation. In an attempt to preserve Google’s name, it sent a cease and desist letter to Microsoft a few weeks ago, calling for an immediate halt on the development of its alternative YouTube app.

Branding is extremely important to social media agencies, as well as large Internet companies like Google. If bickering between competitors flares up (as it most certainly will from time to time), preserving the brand must be a top priority.

Microsoft has since released a statement noting its willingness to work with Google to resolve the issue, which could be as easy as allowing the popular YouTube app to function the same way on Windows Phones.

However, the funniest part of this entire feud is that after everything is said and done, neither Google nor Microsoft will be losing much money as a result of this fued. In fact, Google “recently hit 900 million Android device activations,” and Microsoft has been making $5 off of each Android device sold. Pretty ironic, huh? So while the war seems like a means to an end, there’s only a matter of time before the next app battle begins.

Microsoft and Google at it again

Yes, Microsoft seems to have given Google the hump lately with their new update for the YouTube app on Windows Phones. The problem is that users of this app can now save videos on their phone and play them as much as they want offline, oh no!

In fairness, it is clearly stated in YouTube’s terms and conditions that granting users the ability to store videos is prohibited. I’d like to bring forward the fact that this app isn’t the first of its kind; in fact there are loads of ways to lift YouTube content. On your PC, there are ample extensions available, along with dedicated websites where you can download the file directly. I’ve also noticed that when I type in “YouTube” I’m given a million different options for YouTube downloaders, this is the case with Windows, Android & Apple phones.

The point I’m trying to make is that although this act is prohibited, Microsoft aren’t the first to do it.

Google has made it very difficult in the past for Microsoft’s Windows phones to use any Google tools and functionalities. Google has said that Windows doesn’t have enough users for them to spend time developing apps. However there is a little bit of a contradiction as there are clearly enough users to warrant sending a Cease and Desist letter.

Microsoft is making a statement and hopefully one that will not be ignored – could we see Google developing much needed apps like Google Plus and even maps? Or will this rivalry worsen?

It wouldn’t be an Apple launch without unsubstantiated rumors and concept videos

iOS 7 is rumored to be doing many things. First, it’s rumored to be launched in June. It’s rumored to be flatter much like the Windows Phone interface. It’s rumored to be able to predict earthquakes up to a day ahead of time.

Okay, so we made the last one up, but it’s not far off from the types of rumors that seem to surround everything that comes out of Cupertino, even something fairly insignificant like the iOS 7 release. The thing that makes it so important, perhaps more important than previous releases, is that they’re coming off an embarrassment with their last operating system release due to the faulty release of Apple Maps on iOS 6. They have something to prove this time, that they haven’t lost a step.

Here’s a concept video for what designer Rafael Justino believes will be possible with the new iOS 7 interface. Again, nothing but rumors here but hey, it’s Apple. Rumors are guilty until proven innocent.

Hitting 50K apps on the Windows Store highlights Microsoft’s mobile insignificance

There was never a doubt that iOS and Android are much bigger than Windows when it comes to mobile OS adoption, but a report by MetroStore Scanner that the Windows Store has only recently broken the 50,000 app barrier is both a little embarrassing to the company and at least a little alarming to developers who are looking for long-term homes for their apps.

By comparison, iOS is tracking to hit 800,000 in April and Android is tracking to hit 900,000.

The fear of developers is manifesting in a slowdown of new apps. In November, 2012, the average daily count of new apps submitted to Windows Store was a brisk 400, not far from the 600+ per day that are submitted to the App Store and Google Play. However, this number dropped to 150 a day submitted to the Windows Store in February, 2013.

Windows is fighting back. Their Windows Store website is a virtual billboard of encouragement and incentives for developers to build on their platform, representing the push they’ve made in recent weeks to rejuvenate interest. It seems to be working at least a little as PCMag reported that the daily submissions have jumped so far in March to 280. This spike is due to their “Keep the Cash” promotion that rewards developers with a cash bonus of $100 per app submitted up to $2000. The promotion is running until June 30.

They are also enticing developers with a higher revenue share than their competitors, up to 80%.

The problem isn’t the platform. It isn’t the devices. It’s simply adoption. Windows Phones are not seen very often in the wild (at my company of over 100 smartphone users, I know of 2 people with Windows Phones) and despite clever advertising and marketing ploys by Microsoft, they simply haven’t taken off as well as they had hoped. It’s hard to encourage developers to build on a platform that few people are using. Revenue share is not just a percentage. People have to be using it as well.

The reality is that there’s not a huge difference between 50,000 apps and a million apps when it comes to practical use. The vast majority of apps submitted to any platform have a challenge getting any traction at all. Maintaining that traction is even more difficult without major buzz. If Microsoft really wants to make their phones successful, they should consider embracing a “better apps” mantra rather than trying to bump up their numbers in a race that they can’t win.

If there’s one aspect of the Windows platform that is appealing to developers, it’s that there is a much stronger support infrastructure than with the competitors. Windows as a platform has the potential to be a more robust arena in which app developers can play. By going after “better” rather than “more”, Microsoft would be able to play on quality over quantity, something that would be appealing to mobile device users if it could be shown to be true. Proving it is another issue altogether.

With all of this, one has to wonder what chance BlackBerry has if Microsoft hasn’t been able to get traction.

Who’s really winning between iOS and Android?

This is one of the silliest questions that constantly gets asked on tech blogs and is often answered by infographics. The truth is this: nobody really cares. It’s a personal choice. Some are extremely loyal to the brand or operating system that they prefer. Most are open to whatever makes the most sense to them.

Still, the question will be asked and blogs will attempt to answer it. Which major mobile operating system is winning the war, iOS or Android? Here’s another shot at answering the question, looking at some of the important numbers including activations, fragmentation, and owner satisfaction. Will these numbers sway you or anybody else? Probably not. Are the good to use as justification for one or the other? Probably so.

BlackBerry is making a big mistake by going after Apple

In the art of war and business, knowing your enemy is arguably the most important key to success. The only real attribute that might hold the same level of importance is knowing your own strengths and weaknesses. BlackBerry showed today that they don’t know either very well.

There has been some positive buzz lately surrounding BlackBerry 10, something that the company formerly known as Research in Motion hasn’t seen in years. They have a product that might actually be hot and the last thing they can afford to do is to squander the momentum. Unfortunately, that’s exactly what BlackBerry and CEO Thorsten Heins are doing by going after the Apple iPhone in an article on The Australian Financial Review ahead of their next (and possibly final) smartphone.

The goals of their current PR campaign are clear. They want to paint the iPhone as “old hat”. They want to encourage developers to play on their platform. They want the buzz to continue about their smartphones. The last two goals are good, but going after the iPhone with the BlackBerry 10 is a mistake. That’s not their market to take. Android and Windows are better targets for their brand because they have a lower level of brand loyalty.

Android and Windows Phone users are more accustomed to switching up devices regularly. For many iPhone users, they only switch when Apple gives them something new. That’s not a trend that is likely to change based upon the introduction of BlackBerry 10.

The strategy is one that isn’t completely off base. It’s a risk that they’re willing to take. The iPhone has replaced the BlackBerry in one particular area that RIM once dominated – business productivity. Many companies who once gave all of their employees BlackBerries are now giving their teams iPhones and Heins wants that business back. They feel that they can already pull from Android and Windows Phone users through innovation, so they’re attacking the company that changed the game and brought them to the brink of extinction.

It’s not the right move, though. It should be the next move. Today, they simply need numbers. They need adoption. They need amazing reviews and they don’t have the chops to take on Apple head to head in the business world at this point. Once they had momentum, that would have been the time to take on Apple. You can’t have true momentum outside of buzz until you have something tangible in the hands of users that is getting rave reviews and turning naysayers into believers. To attack Apple at this point is desperate at best and self-destructive at worst.

None of this is black and white. It was a judgment call to head in this direction from a PR perspective and you can’t fault the company for at least taking a shot. Unfortunately, it’s not the right shot to take today. The play has been made so they’ll have to keep going with it, but it would have been nice to see if they could have cut their teeth on easier game first.

1.4 billion smartphones will be activated in 2013

It’s a mobile world. Of that, there is little doubt. There is no longer a question about whether the smartphone and mobile industry in general can take over the mind (and hand) share of the data and communications industry. The only question that needs to be answered is who will be able to cash in and who’s going to cash out soon.

Android and Apple are in wonderful positions. Microsoft Windows Phones and the newest re-entry into the segment, BlackBerry, are on the bubble. They are alive today, but for how long? Perhaps there’s only room for one of them. Perhaps neither will survive.

This small graphic from Muvee breaks down the industry and points to a rather shocking piece of data, that 1.4 billion smartphones will be active in 2013. Even the most ambitious estimates 5 years ago were nowhere in this ballpark. If there’s anything going for Microsoft and BlackBerry, it’s that the market is huge. Will it be huge enough for all four players?

Nokia is sliding dangerously close to oblivion

They can’t seem to catch a break.

News has been bad for the former leader in handset sales worldwide and it’s only gotten worse recently. They announced today that the Lumia 900 Windows phone, their flagship, will be sold at 50% off only three months after its launch. With a 2-year AT&T agreement, the phone costs $49.99.

This was expected to some extent after Microsoft announced that the current phones would not be able to run their upcoming Windows 8 software. It has consumers believing that there’s no reason to get any of the current Windows phones and they would be correct. This news comes on the heels of reports that they’ll be cutting 10,000 jobs and that they were downgraded to “junk” status by all three major credit agencies. Here’s the report from Reuters.

Nokia Oyj has cut the U.S. price of its flagship smartphone in half, barely three months after its launch, in an effort to stanch losses in market share to rivals such as Apple Inc and Samsung Electronics Co.

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