» The service economy

Mary Jo Foley describes the strategy behind Microsoft’s introduction of the second-generation Nokia Android phone:

Microsoft is making Windows available for zero dollars (a k a free) on phones and tablets with screen sizes of under nine inches. That means the company is counting less and less on the Windows operating system as a revenue source. Instead, services and applications are where Microsoft management are looking to earn money — through ads, subscriptions, premium upgrades, etc. — in the future.

So, an Android phone that hopes to make money based on services and therefore ships with Microsoft’s services installed instead of Google’s. Looking forward to hearing how this is really a threat to Apple.