Is Microsoft Corporation About to Kill One of Its Major Brands?

During the last four years, "Lumia" was synonymous with Windows Phone. Former Finnish mobile phone giant Nokia (NYSE: NOK) has set the mark for its smartphones with Windows in late 2011, before finally passing the property in 2013 Microsoft deal, which saw the Windows maker acquires the phone business Nokia mobile all.

Now he could be about to disappear.

Last month, it reported that Microsoft Windows plant plans to launch a smartphone end of the Lumia brand - the mid-range Lumia 650. Although the report has not been confirmed, it would not be surprising.

The success - or failure - of Lumia

Nokia Lumia created the brand to differentiate its smartphones with Windows from their phones Asha-fed and Symbian. Between 2011 and 2013, Nokia launched Lumia dozens of models in a variety of prices - expensive jewelry, including the Lumia 920, and bids as the Lumia 520.

In a few years, Nokia has risen to dominate the phone market Windows. In November 2013, Nokia accounted for 90% of the user base of Windows Phone, according to a report AdDuplex. The lack of enthusiasm for the platform to other mobile phone manufacturers has obviously played a role, but the domination of Lumia can not be underestimated.

Microsoft bid to acquire mobile phone business Nokia finally closed in April 2014. Since then, Microsoft has continued to manufacture and sell under the brand Windows phones Lumia - apparently what to do, given its dominant position windows Phone. In fact, there is reason to believe that consumers know better than them Lumia Windows Phone - Google Trends data shows increasing interest in research Lumia Windows Phone and other leading brand Microsoft, Surface systems.

However, Microsoft has not been very successful. Windows Phone has never been particularly popular, but limited popularity, which has declined in recent quarters. During the third quarter of 2013, Windows Phone accounted for 3.6% of smartphones shipped worldwide, according to IDC. That fell to less than 2% in the third quarter last year. Microsoft has removed most of the acquisition of Nokia last summer, and was intentionally revised its range of smartphones in recent months.

Last quarter, the turnover of the Microsoft phones reduced by 49% on an annual basis at constant currency. Slide in profits Microsoft attributed the decline to "change in strategy announced in July 2015".

The phone's surface?

End Lumia however, it can not mean the end of Windows Phone ,. Microsoft could consolidate their efforts smartphone under its brand surface instead. Rumors of a "surface of the phone" have been around for months. They took a new steam late last month, when a poster on Reddit found surfacephone.com redirected to the page of the general area of ​​Microsoft.

The area remains a modest contribution to the finances of Microsoft, but has grown in recent quarters. Last quarter, the devices in the area generated $ 1.35 billion, more than 20% on an annual basis. With the Pro 4 and the book of Surface Surface, Microsoft is trying to establish a premium brand, innovative devices Windows.

However, the surface of the phone to be confirmed - the Lumia 650 is much more real. Prolific and reliable filter technology Evan Blass published a similar photo of early smartphone.

It may represent the end of a brand. Lumia interruption fit into the context of Microsoft's recent moves. Windows Phone more or less irrelevant, the death of Lumia should have almost no effect on Microsoft investors - beyond being a sad reminder of his failure to take advantage of mobile computing.