Would Making Mobile Hardware Help Increase Microsoft Market Share

Since Microsoft launched its new mobile operating system in September of 2010,the OS has failed to gain substantial Market share.In contrast Google's Android operating system launched in 2008 has become the leading smartphone operating system with over 50% market share.Also earlier this year Google acquired Motorola mobility as a result now develops Mobile OS and mobile hardware.Currently three  of the top four smartphone phone companies that develop mobile OS also build hardware(Google(Android); Apple (iOs);Rim(Blackberry).

A review of the smartphone market shows that Google's Android Operating system is the leader in terms of market share.This is largely because it is free and as a result mobile hardware manufacturers like Samsung,HTC and LG are showing a prefrence for it.Also Google's Android has also won over a large and growing number of the developer community.Apple's smartphone- iPhone and the operating system is the most profitable of any of the smarphone brands.In order to gain market share Microsoft signed a deal with Nokia as the exclusive provider of the Operating system on Nokia's smartphones .The deal between Microsoft and Nokia is still in its early days and if succesful could help Microsoft increase its market share.However,the challenge for Microsoft is that three of the top four smartphone mobile operating systems companies now make hardware.Making hardware gives the smartphone manufacturer some advantages like ensuring a better integrated experience for the customer and then negotiate better deals with mobile carriers/telecommunication companies(This is why Apple was able to make more profit per smartphone sold than any of the competitors).There is growing feeling that Microsoft will not be able to dominate the smartphone operating system market like it did with the desktop operating system market.This is because Microsoft was late in coming into the smartphone market after Apple blazed the trail.Also a drawback for Microsoft is that it charges a fee for licencing its mobile operating system and this is a disincentive for mobile hardware manufacturers like Samsung and HTC who licence Google's Android OS for free.The question is if Microsoft cannot become the leading mobile smartphone OS maker because of lateness to the market and its licencing system fee could it become the most profitable by becoming a developer and manufacturer of mobile hardware and software ?