Microsoft Smartphone News: Tech Titan to Change their Lumia Gameplan

If an internal memo of Microsoft obtained by GeekWire is to be believed, the Redmond, Washington-based tech titan CEO Satya Nadella is of the view that the company requires innovating further and making tough decisions "in areas where things are not working."

According to IB Times, the nature of this internal memo hints that major changes are imminent at Microsoft, as Nadella has overhauled management and also replaced four top executives last week. In the course of the shakeup, Microsoft merged its devices team with the Windows team for its reported underperformance. In the 2015 third quarter, the devices team posted a negative $4 million phone hardware gross margin. Therefore, it is not surprising that Microsoft's phone hardware unit is in trouble, and it may prove to among the tough choices that Nadella stated in the memo.

The said memo, which was circulated internally to company employees, also calls for a "one Microsoft" approach. In the memo, Nadella discussed about his belief in listening to customers and finding solutions to their requirements. The Microsoft CEO stated, "We will be insatiable in our desire to learn from the outside and bring that knowledge into Microsoft, while still innovating to surprise and delight our users."

According to the statement issued by Nadella, the three main focuses of Microsoft going forward will be on enterprise, cloud computing and more personal computing via products such as Xbox and HoloLens. The focus on cloud computing includes an assurance to third-party outreach and extensibility, which was demonstrated in Microsoft recently providing Office support for cloud storage competitor Box.

At the same time, the Microsoft chief executive revealed that the new mission statement of company is to entitle every person and organization on the planet to achieve more. He stated, "It is critical that we start the new fiscal year with this shared vision on what we can do and who we want to become."