Microsoft Corporation (NASDAQ:MSFT) Adopt New Strategy To Expand Customer Base

Software and Hardware developer and manufacturer Microsoft Corporation (NASDAQ:MSFT) yesterday announced the release of two new phones. The new phones released are the Lumia 640 XL and the Lumia 640. They are described as cheap devices designed to handle global communications. Additionally, they come with dual-SIM slots amongst other features as well as having an interesting ‘Free Office 365 for a year.’

Technical analyst have identified strong buy signals in MSFT.

A ground breaking development, these phones are the first to come fully equipped, with an Office 365 subscription. This adds to the company’s offers of a surface bundle including Office 365 and a cheap HP laptop.

These phones are already at a low price, the move to include such subscription for a year is very surprising. The Lumia XL will cost potential buyers at $250, with this being the highest price that it is expected to fetch. This is a real bargain for consumers especially when the cost of an Office 365 subscription costs between $70 and $120 per annum. A price that is dependent on the package that the consumer may purchase. However, Microsoft Corporation (NASDAQ:MSFT) stand to gain as it is virtually adding new customers to its Microsoft 365 feature. Microsoft is foregoing potential sales of Office 365 for one year, in an effort to lure customers to its mobile platform for longer than a year.

Additionally, his move will enable Microsoft to decide the operating system that runs on the phones, and what apps come pre-installed. Hence, deciding the apps it wants the computers to use. This could be great for profit margins in future. Additionally these phones will function with a Microsoft user account. A feature that allows the company to market other cloud products and services, it would like customers to use. Therefore, while the phones are cheap, this is a way for Microsoft to grow its market share for mobile services as well as its desktop-focused cloud services.



Erica is a graduate of New York University's school of Journalism. She joined US Markets Daily as a general assignment reporter in January of 2008.