No iPhone Killer

Microsoft CEO Steve Ballmer introduces the company's new handsets.

Image: Courtesy of Microsoft

Microsoft kicks off its challenge to the iPhone, BlackBerry, and Android phones with new handsets for the Window 7 software today, but a look at the features that are notably absent—especially for small-business owners—suggest that the devices are not quite the ultimate way to beat the competition.

First, AT&T will carry three of the models, the Focus from Samsung, the Quantum from LG, and the Surround from HTC. While T-Mobile is set to unveil its own versions of the Windows 7 phones, Microsoft’s decision to go with AT&T as its main provider is a flawed one. A recent Deloitte survey found that more than half of AT&T’s iPhone users want to bolt to Verizon as soon as that carrier can sell a CDMA version. And persistent complaint’s about AT&T’s coverage, dropped calls, and overall service outages should have given Microsoft pause.

Another problem is that smartphone users are, well, smart. And while CEO Steve Ballmer boasts that personalization is a huge selling point for the Windows 7 phone, at its initial release, the device lacks many of the features that mobile professionals have been used to and take for granted.

For example, the phone doesn’t let users tether, or use their handset to provide their laptop Internet access at times when the user isn’t in a WiFi hotspot. External storage is not available either. And while the devices come with a minimum of 8GB of storage (thanks, Apple, for thinking up that model first), users can’t add additional storage. And copy-and-paste capabilities are not available either, although the functionality is expected to go live with future releases. As for third-party apps, those will only be available through the Windows Phone Marketplace, which means that for the time being, companies can’t install custom apps that may not be available yet on the Marketplace platform.

So what is the phone good for? “Support for corporate email is arguably the biggest reason people opt for Windows Mobile phones,” writes Joe Moran at EnterpriseMobileToday. And Howard Abraham comments that each device is supported by 25 gigs of cloud storage.

But will that be enough to sway small-business owners already thrilled with the concept of owning a Verizon iPhone in the future, or happy with their BlackBerry or Androids, to make the switch? Without the functionality and the “cool” factor, Microsoft doesn’t seem to have much to offer, at least with the initial release. And if its earlier attempt at capturing the social-media phenomenon with the Kin are any indication, this model may be yanked off store shelves quickly, unless a 2.0—which is significantly improved—provides a just-in-time intervention.

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