But strength from Microsoft cloud computing and the sense that CEO Stay Mandela, who replaced Steve Babbler in February, is containing Ionians losses has impressed analysts. Microsoft expects Monika to break even by 2016, said Amy Hood, SCOFF of Microsoft, during the earnings call on Tuesday. Daniel Ivies, managing direct at FRR Capital Markets, said after a decade of missed opportunities, Mandela seems like he’s taking an honest look at Microsoft and “skating with the puck” in front of him. He’s playing a long game,” said De Maguire, senior analyst at CLASS, leveraging the cloud and Monika as a way to sell applications. Despite being obtuse to the suffering of 1 2,500 former Monika employees set to lose heir jobs while he praised his business unit, Elope laid out a framework for cost cuts in a memo to employees on July 17. Devices would focus on high and low cost Windows smartness, suggesting a phasing out of feature phones and Android smartness.
Two business units, smart devices and mobile phones, would become one, thereby cutting overlap and overhead. Microsoft would reduce engineering in Beijing and San Diego and unwind engineering in Lulu, Finland. It would exit manufacturing in Kumar, Hungary; shift to lower cost areas like Unmans, Brazil and Reynolds, Mexico; ND reduce manufacturing in Beijing and Dingdong, China. According to reports that same day, Microsoft would sunset Monika X Android phones, Ash and Series 40 phones within 18 months.
Mandela gave hints about how Microsoft will make money on Monika during Tuesdays conference call. Devices, he said, “go beyond” hardware and are about productivity.