Yesterday at the Mobile World Congress (formerly known as 3GSM) in Barcelona, Microsoft announced the acquisition of Danger Inc., the makers of the Danger Hiptop also known as the T-Mobile Sidekick.
My take: The move is a good one for Microsoft, who relies on third-party hardware firms like HTC to deliver the Windows Mobile platform to consumers in the form of mobile handsets (Microsoft also released their latest update to the platform yesterday). It’s about time they bring some of that expertise in-house.
Given the lackluster sales of the Zune in the portable music space, Microsoft’s lousy history in the handheld computing space, and increased competition from Apple and Google in the smartphone market, Microsoft may finally have an opportunity to highlight its investments into portable technology. With Danger they’ll be able to leverage the existing Hiptop industrial design team, the active Hiptop developer community, as well as the existing Sidekick consumer base to launch new mobile products and services that might have a shot at becoming something more than just a press release.
In a sick twist of business irony, it is assumed that Microsoft purchased Danger to compete with Google’s Android. The co-founder of Danger, Andy Rubin, also founded Android (which Google bought in June of 2005).
“It’s about time they bring some of that expertise in-house.”
“they’ll be able to leverage the existing Hiptop industrial design team,”
Danger doesn’t manufacturer devices. The Hiptop/Sidekick devices are designed and manufacturered by Motorola and Sharp. Danger has a Java based, client-server mobile platform. This is what MS is acquiring with this purchase; not device know how. This purchase allows MS to go down market with Windows Mobile Smartphone with Danger’s user base wich is comprised mostly of the late-teen/early 20’s demo. Something that Windows Mobile devices have not been able to do.