Microsoft Reduces Orders To Supply Chains Due To Low Smartphone Demand

A recent report claims that Microsoft Mobile is putting in decreased orders to supply chains because of lower-than expected smartphone demand in emerging markets.

Microsoft has been pushing its low-end smartphones to emerging markets like India, South America and Southeast Asia, but sales in these markets are not what Microsoft has anticipated. According to a recent report, Microsoft Mobile is putting in decreased orders to supply chains because of lower-than expected smartphone demand in emerging markets.

The report claims that Microsoft will most likely decrease its orders to supply chains by as much as 20% a month throughout the rest of 2015, in order to adjust to market demand. Currently Microsoft is selling low-end smartphones with 4-inch WVGA screen in the emerging markets, but sales in these marked have been weak.

Currently, Samsung Display, Compal and TPK are the makers for these low-end Windows Phones, and they claim that Microsoft now has conservative views for the lower-priced smartphone market in 2015 and is expecting to match its 2014 performance as a best-case scenario.

The reason for drop in sales is due to the increased competition from the Chinese vendors such as Xiaomi, ZTE, Huawei and Coolpad. Luckily, these competition open a new door for Microsoft, and the Redmond based company is actively pursuing cooperation with the Chinese phone makers for its Windows 10 platform.

Source: Digitimes