I think that Microsoft understands that well, and they are doing quite a bit of work to address the situation, but new rumors suggest that Microsoft is considering the unthinkable: run Android apps in Windows Phone.
"THIS VISCERALLY FEELS LIKE A BAD IDEA"This viscerally feels like a bad idea, but is that the case? On the surface, it sounds good, but in reality, even running Android apps on a powerful desktop machine with BlueStacks didn’t feel so great for me, so would that work on a handset? It seems slippery at best. With Nokia about to launch their first Android device, some say that Microsoft should create an Android derivative based on Google’s code.
That sounds interesting, but Google has made sure that the Open-Sourced version of Android would be very (very!) difficult to fork and maintain over time, since a lot of the interesting stuff resides in the non-open source parts that need to be licensed from Google. It’s a smart play, but ultimately, even the closest Android allies like Samsung and LG are frantically looking for ways out of Android. I’m afraid, that there is not such a thing in the short term (in the longer term, Samsung has their Tizen OS and LG has WebOS).
"ASK BLACKBERRY WHAT GOOD ANDROID APPS DID FOR THEM"Going back to running Android apps in Windows Phone: haven’t we seen that movie before with Blackberry? And how much did that help them exactly? Sure, Microsoft is much richer, and yes Nokia is arguably more successful than BlackBerry, but still: if people ultimately buy your handsets because they can run Android apps, they could get even better, or cheaper, or more customized handsets (hardware-wise) that run Android natively.
Additionally, all this will do is send the signal that there is no point in investing in Windows Phone development, which will further fuel the original problem: Windows Phone needs more great apps, fast.
"MICROSOFT MUST WIN DEVELOPER SUPPORT, OR ADMIT DEFEAT"For all those reasons, Windows Phone is nowhere where Blackberry was, and it seems to me that they should either make every efforts to win developer support, or admit defeat.
In the end, Microsoft has the same challenge it had last year, and the bottom-line is that there is some progress, but observers fear that progress is not fast enough, which is a fair assessment. I personally don’t think that running Android apps will do much good to Windows Phone as a platform, which has a great potential. The platform needs to prove itself, or will ultimately stay in the background.
Android didn’t become what it is only because it’s a great platform. I had modest debuts in fact. Android became what it is because it had massive handset manufacturer and carrier support because it was the only solution to the “iPhone problem” for the industry. Beyond apps, beyond code, Microsoft needs to convince handset makers that they won’t be commoditized to death and that they can differentiate their products. Android is not an OS, it is an industry.