"In the field of smartphones, Microsoft has always remained a step behind Apple and Samsung. Its Windows Phones have not been as successful as Apples iPhone or Samsung’s Galaxy. Now under Microsoft’s CEO, Satya Nadella the company has decided to change its policy. Instead of launching smart phone that have the common and mainstream features favored by everybody, Microsoft will focus on features that are unique and appeal to a specific group of customers.

In an interview with The Australian Financial Review, while on his visit to Sydney to address a local developer’s conference, Mr. Nadella said that he would aim to compete with Microsoft’s rivals not by introducing similar products but by focusing on creating products that are different. He further said that wanted to instill a belief in which his workers were not afraid to fail. This would enable them to create unique and different products that have never been seen before instead of introducing tried-and-tested products.

While this might suggest that Microsoft will stop developing smartphones in favor of devices the organization excels at the CEO hinted that Microsoft might release another mobile phone in future: “We will continue to be in the phone market not as defined by today’s market leaders,” he said, “but by what it is that we can uniquely do in what is the most ultimate mobile device,”

According to him, Microsoft’s special skills will be used to develop phones which might only attract a particular group and not every customer: Therefore [with Nokia assets], we stopped doing things that were me-too and started doing things, even if they are today very sub-scale, to be very focused on a specific set of customers who need a specific set of capabilities that are differentiated and that we can do a good job of.

Of course this might tip the scales in the favor of Microsoft’s competitors and it might be a setback for the company, Mr. Nadella is not worried about this. In teaching his workers not to be afraid of failure the CEO wanted them to believe this too. He believes that competition is irrelevant but success is. He said “We don’t want to be driven by just envy of what others have, the question is, what we can bring? That’s where I look at any device form factor or any technology, even AI.”

On rumors that Microsoft might launch a new Surface Phone Mr. Nadella said that Microsoft would not release any device unless it was introducing something new and that the company was interested in how users will use the device rather than the device itself.

About HP Elite X3, Nadella said that Microsoft was present in the ‘structural innovation’ but was focusing on productivity and security.

Mr. Nadella’s interview might suggest that when the next Microsoft Phone comes (whenever it is), it will be truly innovative and amazing. And looking at the way that most mobile phones are the same these days, Microsoft’s new approach is maybe what the market needs now."