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Stephen Elop departs Microsoft, Terry Myerson now leads the new Windows and Devices Group

Microsoft has announced some big shifts in its leadership team, which include the departure of Stephen Elop, who was previously the Executive Vice President of Microsoft's Devices and Services division.

Microsoft stated:

"Executive Vice President Terry Myerson will lead a newly formed team, Windows and Devices Group (WDG), focused on enabling more personal computing experiences powered by the Windows ecosystem. This new team combines the engineering efforts of the current Operating Systems Group and Microsoft Devices Group."

Terry Myerson

The full press release, which also reveals Microsoft's new leadership team, is below

Microsoft aligns engineering teams to strategy

REDMOND, Wash. — June 17, 2015 — In an email to employees Wednesday, Microsoft Corp. announced changes to its Senior Leadership Team to drive engineering alignment against the company's core ambitions: reinvent productivity and business processes, build the intelligent cloud platform, and create more personal computing.

"We are aligning our engineering efforts and capabilities to deliver on our strategy and, in particular, our three core ambitions," said Satya Nadella, CEO of Microsoft. "This change will enable us to deliver better products and services that our customers love at a more rapid pace."

Changes to the Senior Leadership Team include the following:

Executive Vice President Terry Myerson will lead a newly formed team, Windows and Devices Group (WDG), focused on enabling more personal computing experiences powered by the Windows ecosystem. This new team combines the engineering efforts of the current Operating Systems Group and Microsoft Devices Group.

Executive Vice President Scott Guthrie will continue to lead the Cloud and Enterprise (C+E) team focused on building the intelligent cloud platform that powers any application on any device. The C+E team will also focus on building high-value infrastructure and business services that are key to managing business processes, especially in the areas of data and analytics, security and management, and development tools. As a part of this announcement, the company will move the Dynamics development teams to the C+E team, enabling the company to accelerate ERP and CRM work and bring it into the mainstream C+E engineering and innovation efforts.

Executive Vice President Qi Lu will continue to lead the Applications and Services Group (ASG) focused on reinventing productivity services for digital work that span all devices and appeal to the people who use technology at work and in their personal lives.

As a result of the organizational moves, Stephen Elop, Kirill Tatarinov and Eric Rudder will leave Microsoft after a designated transition period. Unrelated to the engineering restructuring changes, Chief Insights Officer Mark Penn has decided to pursue another venture outside Microsoft and will be leaving the company in September.

Following these changes, Microsoft's Senior Leadership Team totals 12 executives:

  • Satya Nadella, Chief Executive Officer
  • Chris Capossela, Executive Vice President and Chief Marketing Officer
  • Kurt DelBene, Executive Vice President, Corporate Strategy and Planning
  • Scott Guthrie, Executive Vice President, Cloud and Enterprise
  • Amy Hood, Executive Vice President and Chief Financial Officer
  • Kathleen Hogan, Executive Vice President, Human Resources
  • Peggy Johnson, Executive Vice President, Business Development
  • Qi Lu, Executive Vice President, Applications and Services Group
  • Terry Myerson, Executive Vice President, Windows and Devices Group
  • Harry Shum, Executive Vice President, Technology and Research
  • Brad Smith, Executive Vice President and General Counsel, Legal and Corporate Affairs
  • Kevin Turner, Chief Operating Officer

Source: Microsoft (opens in new tab)

317 Comments
  • Good
  • I like it too. Bye Nokia, for good now.
  • Nokia is thriving. Divestment of devices division was well timed.
  • Nokia stock is down $1.50 from last year.
  • Some of that is because of rising dollar. But you are right Nokia is currently highly undervalued.
  • He didn't actually say Nokia is highly under valued. He said the stock is down. It seems you may feel that's undervalued. Things are worth what people are willing to pay and people have assigned Nokia a value that is $1.50 a share less than it was a year ago. Based on performance I think that's about the right value.
  • Actually, things are priced at what people are willing to pay. Their "worth" may or may not equal that price.
  • If that is the case, then no stock, ever, would be considered "undervalued" on the stock market.
  • Most people use price and value interchangeably, but that is not technically correct. Based on its economics (its potential cash flow stream or the value of its assets) Nokia has an intrinsic value. Whether people price that value too low, just right, or too high, is based on a multitude of factors that have absolutely nothing to do with the actual intrinsic value of Nokia (i.e., greed, fear, knowledge of the business, investment time horizon, etc.). When you hear someone say a company is undervalued, what they are really saying is the company is underpriced relative to its intrinsic value. Price is what you pay, value is what you get.
  • One less division which was huge can account for that. And they're more cash rich, and with less expenditures. Though that lasts was sold almost two years ago... So what do I kno.
  • Well, to be fair, (and you have a valid point), there's no telling where Nokia stock would be if they HADN'T sold the division, although it's a reasonable guess to say it could be even worse. So even though they aren't doing great, still, it likely was still good timing. Posted via the Windows Central App for Android
  • Odds are Nokia would have gone into bankruptcy without the sale. All-in Microsoft paid around $9 billion for a company that was losing money and shrinking. On a purely economic basis the phone business had little to no value to anyone but Microsoft, because Microsoft was completely depedent on Nokia for pushing the Windows Phone platform. The other OEMs making Windows Phone hardware weren't nearly as enthusiastic as Nokia was under Elop. But actually, before going into bankruptcy, Nokia likely would have just shutdown that part of the business. Network equipment is really the only place they make money, and they don't make a lot, but without the drag of the phone business they survive.
  • Dani what about Joe Belfiory. He is not on the list.
  • He's the new hair stylist dept.
  • best comment made for htis article! thanks for the moment of levity!
  • Joe isnt an executive. I am pretty sure he works for Terry.
  • It is up 0.90€ (1.02 US$) year over year. Plus US DOJ approved the Alcatel deal today.
  • Nokia is up like 400% after unloading Windows Phone division to Microsoft. This $1.5 drop is kinda very little and people who held the stock in a hope that Nokia will get back into phoe business have been selling. Now, Nokia CEO told German newspaper of Nokia's intent to get back into phone business and stock is rising again. Also, Mr. Elop is not leaving the company. He is being sidelined or fired.
  • (y) glad they were able to force MS to buy it, by having such a dominant position in WP space.
  • But they should have bought HERE maps, that has mor value than hardware production, where Microsoft promptly had to lay off 12,000 production workers.  So not sure what the Nokia right down will be, but its going to look pretty bad.  
  • Nah nokia still has their R&D and all their patents, nokia can make plenty of money with just those two things, I'm not entirely sure what else they do though.
  • Nokia has today more than 60.000 employees doing networks, mapping and selling patents (yesterday LG signed the deal with Nokia to utilize its patents). Microsoft purchased from Nokia the Devices part with 25.000 employees and today there is only probably between 5.000 to 10.000 employees left from that 25.000.
  • Elop was not Nokia, not even close.
  • Not even close is right. He was brought in to fix Nokia. Now you can argue whether or not he did fix it. But he was not Nokia.
  • Microsoft just lost their best presenter. Company is going downhill fast.
  • @cool8man:
    Exactly. I think Elop was the best public speaker Microsoft has on their team. He had such a natural aura of resting in himself and confidence. I would say though that Joe B. and Panos P. are fine as presenters.
    But Myerson is simply awful on stage. Next time he's scheduled for a public appearance, they should signpost the
    way to the audience in the wrong direction, to make sure he's kept away as far as possible.
  • Can't get any worse than Ballmer... just looking at his face made me want to vomit. His loud, brash, used car salesman type pitch was cringworthy
  • If Myerson would announce the release of L940/L940XL on 9/30 and would be available on ALL US carriers, I would consider him the best speaker in the world.  :-)
  • Elop was damn good. But I personally prefer Joe and Panos. These guys are engineers. These products are theirs and the way they speak on stage shows that. To them it isn't selling, it is showing off their product. Leave the sales pitches to the sales people. Elop is a sales person.
  • We want more than presenting skill out of him - like sales performance.  US market has lost 1 million WP users mainly due to the 'carrrier exclusivity' marketing and the lack of flagships in a very critical time period.  When iPhone 6, S6, G3 and G4 are attacking, MS answered with the failure of McLaren.  The edge in the camera tech has almost vaporized during this period.  Overly emphasizng the low end by igoring the high end has helped WP little.  We want to see that L940/L940XL along with L840/L840XL be offered on all carriers in the same timeframe.  L1040 should also be offtered on all carriers next Spring, eauipped with SD820 and 50MP camera.  Nothing less.
  • How do you know he didn't advocate for all those things you think didn't happen?  He could have easily been overriden and told to sell the crap out of low end devices.  Until he writes his memoirs we will never know for sure.
  • because the same thing happend when he was at Nokia.
  • I can't guess, but I can see the results.  There is no excuses for poor performance beccause he was the CEO at Nokia and the head guy in MS WP devision.  His performance certainly doesn't match his fat compensations.  Look at the WP market share in China and US, it has been a disaster.  If the 'carrier exclusivity' marketing in US will continue with the W10 phones, the disaster would continue.
  • The results haven't been stellar. But I'm not sure I can put all the blame on him. Maybe he did want to release the " McLaren" last year and the powers to be said No! Wait till WP10. I don't know.
    -------
    What I do know is that I refuse to purchase another middling phone. I'm holding out for a true flagship. Stop giving me 4xx, 5xx, 6xx, 7xxx or 8xxx or some watered down 9xx without glance. I'm not in the market for any of those phones. Give me something that competes,with the iPhone 6, SG6, LG4...
    -------
    I simply don't want hear this fall wait till next year.
  • Duhh - It has a lot to do with Elop.  Elop was simply pissed at not being the CEO, and was pretty unhappy working under Satya. Elop didn't get Fired, but if he is not performing its best to "Let Him Go".  This re organisation does not read like Satya really wanted or needed to merge hardware and platform divisions after only 6 months from his last organisaiton.  
  • He was forced to leave. I don't care if you call it, laid off, downsized, or any other term, it all means he doesn't have a job with Microsoft anymore so he was fired.   
  • As I said, he no longer has a position at Microsoft, that's forced to leave. Also, yes because the ice is removed, that forces you to no longer be able to stand on it, your analogy just further proves my point.
  • in Elop's case, it's more like standing on a burning platform
  • HAHAHA!! BURN
  • Like standing on a burning platform?
  • Look up Elop's email to Nokia employees when they went all Windows Phone. You will understand. @oiler_ head that was a good one!
  • Wait isn't Joe Belfiore an executive?! O.o
  • Joe Belfiore is the Corporate Vice President, Operating Systems Group at Microsoft.   as seen on wiki. not in the top tier yet.
  • not too surprising - always felt like he wanted out...
  • lol, are you talking to him late at night on the phone, curled up on your bed with your feet in the air, twirling the phone cord? How would you possibly know that?
  • Intuition
  • But then, how would you know otherwise? Jeez, the guy was just expressing an opinion and you jump on him like it was personal. Still hungover and grumpy? Or are opinions not allowed here?
  • Since when opinions are allowed here?
  • Some opinions are more allowed than others..
  • Agreed, a little bit over the top.
  • hehe Rubino likes to wag his finger. 
  • And why can't Daniel be the editor and inject some humor and views in the comments? Seems like you may have a chip on your shoulder and no sense of humor.
  • He simply gave a sarcastic example of how he fathoms it may be possible and then asked the commenter how it's is possible that he knows. In didn't see Daniel condemn the comment itself...
  • "felt" it is a subjective term which one uses to express their "feeling".  I also am a professional at interpreting modern dance.
  • Someone got owned. Idk who. Hakhakhak
  • He better not be!!  /jealous
  • He didn't say he knew. He said he "felt". Sometimes I think you're having too much beer with all these rude answers to your readers. This is the reason I'm spending more time now on Winbeta and Neowin instead of WC. Too bad they don't have good WP apps otherwise I'm ditching WC!
  • Actually he didn't say "I felt" he said "always felt" which could be construed as either "I always felt" or "it always felt" the latter of which implies a much more universal conjecture.
    Regardless, he knows nothing about Microsoft or Steven Elop, so it'd be like me saying "I always felt like Hitler was scared of space". My statement isn't "technically" incorrect because I *could* feel that way, but it's a stupid thing to say when I have no authority on the matter.
  • You can say whatever you want but it still doesn't change the fact that "I felt" or "I've always felt" doesn't mean "I knew" or "I've always known".
  • Same here; for example, I find Neowin much more professional with decent articles and most importantly without unnecessary, narcissistic and rude editor comments.
  • WC is indeed turning into a toilet where editors are shitting on the readers. Maybe its Daniel's plan all along for the name change. WC, we are literally cesspool lol
  • And the world is apparently turning into a ward of emotionally volatile divas who can't take any kind of criticism. The OP had no substantial basis for his comment other than just what he said--his feelings. So when Daniel calls him out for it, it's wrong? Some of you need to get over yourselves.
  • Guys, it was just a joke. :D Poor Rubino :)
  • Twirling a phone cord?LOL people still do this :-)
  • That's exactly the point! The whole statement was a joke. Get over it guys, you know you've said a lot worse to other commenters.
  • Not cool Rubino. Makes you look like youre jelous of him. 
  • He was surely blind sided by the news. His twitter feeds always excited about Microsoft's progress!
  • If he was a valued employee I would think they would've found a position for him.
    Wonder if Santy knows he is the one who decided for Nokia to go with WP.
  • Finally!
  • AWESOME news!!! He should had got rid of himself during Nokia
  • Considering that virtually ALL existing Windows Phone for slae today are Nokia or Nokia branded Microsoft devices, Elop is the only reason Windows Phone still exists! You can pretend it's not the case, but the TRUTH is what it is!
  • Yeah, he actually helped MS a lot. Quite glad he was there to choose WP as the OS of choice.
  • Elop was sent to take over Nokia by MS and to make WP the OS of choice.  It was MS's directive.  MS financed Nokia $1 billion per year while he did WP conversion.  He got a fat transition package when MS took over Nokia.  He continues to receive generous compensation from MS while the WP market share in China shrank to less than 1% and the US WP user base shank by 1 million.  He is the only person in the world who has made some real money out of WP venture.  I have no sympathy that he has been re-orged out.  He has engineered the 'carrier exclusivity' marketing in US and that in effect blocks out all the customers on other carriers to purchase the WP phones like L1020, L1520, Icon, etc.  I'm glad that MS has taken over Nokia and retired all the 512MB phones without front camera.  The specs for L435, L540, L640/L640XL make much more sense.  I hope that MS would quickly refresh the L7xx an L8xx phones and release new W10 flagships and L1040.  There is no time to waste. 
  • Thank you for writing this. It's absolutely the truth, and as someone who used to dev for WP I can tell you Nokia under elop reached out to devs in a way MS never did or will. Nokia was the reason WP made any head way at the numbers in market share gains speak for themselves. The only people who should be exited about this are those who thought they should've gone android. RIP WP and no that's not hyperbole read this again in 1 year.
  • Absolutely! Elop is guilty of making me buy 920's, 1020's, 1520 ++
    Without Elop and Nokia there wouldn't be any WINDOWS PHONE!!
  • True but with some real leadership the WP market share would be something else than today 3-4 %. Finally we can see real leap in the volume and market share increase. Next year this time we are already in douple digits.
  • Terry is a boss
  • @ZackTheNever:
    He is in fact, although I never understood the reason why.
  • Stephen Elop will be joining ISIS after this. It's official!
  • Lol wouldn't surprise me.
  • The Trojan is gone
  • Nadella antivirus deleted the Trojan
  • Which in fact is a virus disguised as anti virus
  • Elop was never liked by the Nokia community, so a lot of people will be glad to see the back of him as a result. Me, I'm neutral to it.
  • If by Nokia community you mean symbian/maemo believers then true.
  • I had a feeling this may happen.
  • This can only serve as a good move by Microsoft. Hoping to see new hardware innovations from this big move.
  • How do you get "new hardware innovations" from management and organsiaiton restructering ?  That come form great design and engineering teams and inspired leadership.  Do you really think that Myerson offers that ?
  • Take for example what happened when satya became CEO of Microsoft there were big changes. Restructuring in a department of an organisation certainly brings changes also with new ideas so I can only hope that there will new and innovative things to come.
  • HURRAH!
    Goodbye Eflop, go ruin another company! (May I suggest you make a trip to Cupertino? You know...so you can do something useful in your life, for once)
  • This.
  • The bug's removed for good. He ruined Nokia totally.
  • Nokia ruined Nokia back with Symbian and getting caught off-guard by the iPhone. That ship was sinking before Elop, and everyone knows it except those with a Nokia love fetish.
  • +1
  • MeeGo was supposed to be Symbian's replacement. Intel co-developed MeeGo with Nokia.  It never got off the ground because of Elop's move to Windows.  Intel then "left the building".  
  •   But but but he was brought in to "fix" not run it down .He made a series of dumb decisions that ensured that Nokia's decline accelerate . Eg. The first thing he did when he got on board was to kill off Symbian even though he knew that the first Nokia windows phone wouldn't hit market until after 10 months . Granted that Symbian was on collision course , it made zero sense to kill off a platform knowing very well that your next OS isn't quite ready yet .   
  • And some people with Microsoft fetish may not understand the Nokia story or how Elope COULD HAVE saved it. *sigh*
  • Lol.
  • It's not that simple as you say Daniel. During Elop's time Nokia's revenue fell from € 41,7 billion to € 25,3 billion and profit from € 2,4 billion to 188 million. That's quite an achievement. There was still enough money to turn the company around, but Elop killed it. It is not necessary that you start calling your readers fetishists just because they think the same way as most market analysts thought.
  • Agree. Nokia had the best quarter when Elop started, not that he had anything to do with it, 4Q2010 in sales volume. They sold more than 25 million Symbian devices and little over month after, 11th of February 2011 when Elop announced the transfer to WP the sales fall dramatically and has never come back. I believe Lumia devices are sold less that 10 million still per quarter although there is the MS resources and ex-Nokia hw manufacturing and design baking up the Lumia. Sad story from #1 to bottom in 12 months.
  • Exactly. The Cult of Former Nokia Glory won't listen to logic, though.
  • Yes Symbian would rule the world if no Elop.
  • LMFAO sure, sure
  • what color is the sky in your world, vhyr?
  • It has sarcasm tags (seems that tags not allowed..) on Symbian, not sure about color.
  • LMFAO
  • I was reading the comments just to find yours lol .... I knew that would be your reaction
  • I'm glad I didn't disappoint ;P
  • :D
  • Interesting. I wonder if the no flagship for 2 years had anything to do with this.
  • That's Nandelas doing.
  • And Nadella's smart for doing so.  To release a half-baked flagship that's not competitive or brings any new value would be a waste of money for the company and carriers, plus it would ruin the company's image including his own.  Can't wait to see this epic 'cityman' phone that's been teased here.  I feel like it's the flagship phone we've all been waiting for.
  • The supposed flagship is going to use components available today so the only reason they havent released anything that could be upgraded is that they are incompetent and care more about their ios and android users.
  • Their Iris scanner is unique as is Windows Hello. One of the first phones with USB C.
  • Any hints on more practical security improvements like enabling bitlocker by default?
  • Daniel please answer,Isn't using USB C while the whole world uses micro USB a bad move?I mean just like how apple users suffer with lightning cables while we all have micros....
    What do you think?
  • Wrong, USB-C makes a lot of sense on Windows, let me tell you why 1) USB Type-C replaces DisplayLink/HDMI/MHL on a single technology to allow a phone to connect to a 4K external display or monitor 2) USB 3.0 was never popular on phones, you really want to keep using USB 2.0 speeds on your phone? 3) USB Type-C can also be used for charging your phone, so there could be a standard with USB Type-C to charge all phones wirelessly with a new adapter.
  • I agree with u that it is actually a huge advancement....the problem is that how long will it take to change the whole technology of today (using micro USB) to the type 3?? I mean we are gonna suffer when we want to charge the phone and we have to have a type c wire with us,just like iPhone's lighting! And not always wireless charging is good,i mean its only good when you're not using the phone...
  • Nokia N-1 leading the heard..
  • Everyone will be using USB C in a few years.
  • @theman04 @theefman Actually I agree with thaman04 As I've pointed out in my editorial series here at Windows Central "Microsofts Smartphone Strategy," a launch of a high end device that offers no differentiating qualities, and only offers "high end specs" war where users are entrenched in their ecosystems of choice would have resulted in a slaughter and subsequent bad press for MS. We have to acknowledge the hard truth that all high end devices from MS were always overshadowed, sometimes made virtually invisible by the competition.:-( 900, 920, 1020, 1520, 928, 925, 930/Icon. Sure the tiny fraction of the tiny 3% of we Windows Phone fans who have high end devices loved and own those devices, but for numerous reasons(poor carrier support, limited distribution, limited marketing, entrenched consumers in rival platforms) most smartphone consumers are wholly unaware of the existence of most of those devices. And of those that knew about them our meager our share reflects their level of interest.
    Imagine if MS launched a high end Windows Phone 8.1 device last year. Sure it would have had high end specs, just like the iPhone 6/plus that set records with 10milliin initial sales. The launch would have been yet another failure. The press would have had a field day.
    I like you would love to have a new high end device in my collection to accompany my 1020 and 1520, but MS's strategy to build a larger base by courting the low end while debuting high end devices that will showcase Windows 10 is better for the platform and tells a better story that the media can grab onto and communicate to regular or consumers. That's the market tht positive press regarding Windows Phone needs to trickle down to. The best chance of that happening is a blockbuster launch of high end devices alongside the massive Windows 10 launch. A launch of an 8.1 high end device would be perceived as more of the same and we already know how they feel about that.
  • I like your comment, but I also think carriers have a lot to do with this, most carriers are multi-billion companies that have data analytics and statistics specialists which tell why they should sell devices with iOS and Android instead of Windows Phone, I'm pretty sure the answer is the apps that their users use are not available on WP. I'm talking about messaging apps (Snapchat, Whatsapp, Facebook Messenger, iMessage, Hangouts) and social network apps (Instagram, Twitter, Reddit, Facebook, etc).  
  • Plus it's collecting hype. I cannot count all of the articles I have read in 2015 that talked about the next Windows flagship. Honestly, I hear more about this mysterious device than i do the current or next iPhones. This is very good.
  • Where is it collecting Hype, just in Windows Phone Forums ? I am not aware of anyone in the real worls thinking Windows Phone, or its next phone. Al they know is that Windows Phone has failed, and is actually sinking in marketshare.  Thanks Elop !
  • Don't forget Nadella was against buying Nokia in the first place.
     
  • Was he? As he was not in a position to have any difference. I think the story goes that in the board of directors (of which Nadella was not a member) it was Bill G that was against the deal. Though Nadella may have been the one advising Gates. And lets add that Microsoft never bought Nokia..
  • All they had to do is what Daniel suggested like a year ago: release a Lumia 935 with spec upgrades. That would've been the perfect holdover device between flagships. Instead, they will go two years between flagships--none of which have ever been on all carriers--and Windows Phone market share in the U.S.--the most profitable smartphone market in the world--shriveled up as a result. It was a dumb move on Microsoft's part.
  • I agree. The "no flagship" plan has been an absolute disaster. They ticked off many of the fans they had and lost sales because there is literally nothing to buy but phones with vastly outdated specs. Alternate your most ardent evangelists. Great idea. Just silly and pointless.
  • you do realize that flagship phones are a small percentage of the market right?
  • I absolutely realize flagships are a small portion of the market, as well as I realize that is the proper canned response to my complaint.  However, it is a small portion of the market that serves the ecosystem's most ardent supporters.  When you dissappoint these people and effectively force them to switch if they waant a smartphone that is comparable to today's tech, you lose more than the sales for that one person.  You also loose the sales that person influences.  My mother, brother, and sister-in-law all have Windows phones.  Is that because they found them on their own?  No.  They were recommended by the salesperson?  No.  It's becasue for a long time I recommended Windows Phone and they trusted my opinion.  And they are for the most part happy.  However, I have not been comfortable recommending WP for a long time now, and Microsoft loses thoses sales.
  • I completely agree.  I went from a lumia icon to a note 4.  While I like WP much better than Android I like the hardware in the Note.  When my mom needed a new phone I suggested a GS5.  Not because she needs the apps you can get on Android but because: 1. you could no longer buy the icon on Verizon.  2. The GS5 was inexpensive on contract (getting my mom off the contract was next to impossible). 3. The HTC One M8 has no camera button and takes poor photos compared to the icon and S5.  My mom doesn't really need a flagship but she needs a good camera.  The S5 was free on contract when she got it.   I might return to WP10 when it comes out but every day on Android I forget more and more why I like WP better than Android or iOS (or learn to live with the OS shortcomings).  Every day I find an app or game that isn't available on WP.  In short each day is another day further away from WP and further away from recommending it to others.  MS doesn't have the carriers on its side.  It doesn't have the press on its side.  It doesn't have the developers on its side.  Not releasing a flagship phone is slowly eroding the numbers of the only people who want WP to succeed (current customers).
  • Not in the U.S. In the U.S. the flagship market is huge and drives everything.
  • Somebody should tell that to Apple and Samsung, all they do is make and sell boatloads of flagship phones.  And oh, by the way, that "small" percentage of the market is where most of the profits come from. Which is why the two companies I just mentioned make a boatload of money from selling just phones and Microsoft barely breaks even, if not losing money!
  • I think it would be appropriate to say that at least for Windows Phone the flagships have always been a very small portion of the market.  1020 sales were supposedly abysmal.  1520 didn't do well either afaik. But it's still a massive mistakle to completely ignore them if you want the platform to succeed.  As well as the evangelist argument above, there is also the aspirational effect.  People aspire to getting the high end phone but can't quite get there yet, so they get the lower range one.  But if the hig end phone doesn't exist, they will lust after the other platform's high end and buy a low end version of it instead. In addition, if you have no high end your whole platform just looks kind of... weak.  Like you have no confidence in it. Microsoft needs to always have a flagship available, even if sales are not great.
  • The 1020 may have failed in sales but