Trouble for Windows Phone: Microsoft makes cuts to mobile business

Is this the beginning of the end for Windows phones? Microsoft is making major cuts to its smartphone side, taking steps to back out of the phone making business. The company announced it eliminated more than 1,800 jobs, most from the Nokia side. And that means there are not many people left to keep making new smart phones. Microsoft purchased Nokia two years ago, for $7.2 billion. And boy was that an expensive mistake. Microsoft has not been able to harness Apple's successful formula Of making its own phones in-house. However, Windows phones are not dead yet. Microsoft executives have said they will not completely quit the phone business and instead will focus on areas of differentiation. Maybe that means Microsoft will just make phones for business customers instead of the average consumer. So don't count on seeing any new Lumia phones. But keep in mind that other companies like Acer and Alcatel can still make Windows ten phones. It's not easy for Windows phone to succeed when app makers just don't develop for windows. All the big smart phone apps come for first to Iphone and Android. And instead of fighting it, even Microsoft. Now makes apps for iPhone and Android. That's it for this tech news update. I'm Bridget Carey, and you can stay on top of the biggest stories at CNET. COM/UPDATE. [MUSIC]