Microsoft is looking to take another swing at the mobile phones market, which is currently dominated by Google's Android and Apple's iOS, with the release of the company's two premium handsets. However, Apple's continued succes with its new line of smartphones is casting doubts over whether Microsoft can compete.

Microsoft hosted an event in New York on Tuesday announcing a series of new handsets, namely the Lumia 550, Lumia 950 and Lumia 950XL. The smartphones look promising despite countless leaks before their release and considering they came from the Redmond Group. The Lumia 950 features a 5.2-inch build, 2560x1440 OLED display and a Qualcomm Snapdragon 808 processor. The Lumia 950XL is a larger version with 5.7-inch display, 2560x1440 resolution and a Snapdragon 810. The Lumia 550, on other other hand, comes with a 4.7-inch display, 1280x720 LCD with Glance and Qualcomm Snapdragon 210 quad-core A7.

However, CNBC News cited analysts predictions and an IDC report estimating Microsoft's possible share to amount to just close to 2.5 percent - a figure that reveals the market appears shut to anything Microsoft will be offering.

"They know they've lost this generation," Ian Fogg, head of mobile at IHS said in an interview with CNBC.

"Windows as a mobile operating system is now irrelevant for the smartphone market. The reason Microsoft is still continuing to make hardware is to maintain a toehold in that part of the market."

Microsoft’s restructuring announcement last July was considered an omen of the company’s losing market share. Microsoft chief executive Satya Nadella had stressed that the company will be working more on managing better phone portfolio while narrowing the tech giant's focus.

"We'll bring business customers the best management, security and productivity experiences they need; value phone buyers the communications services they want; and Windows fans the flagship devices they'll love," Nadella said.

Estimates suggest that around 100 million devices are already running on Windows 10. The operating system may be a driver for Microsoft to convince consumers to adopt the software in their mobile devices, but analysts remain uncertain whether this is possible with Android and iOS controlling as much as 96 percent of the market.

Apple also does not seem to be going away any time soon as new figures suggests that the costlier production of iPhone 6s will not affect its margins. The Trefis Team even suggested that Apple can maintain or increase its margin because of its storage mix strategy and iPhone Upgrade Program.

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