Microsoft's efforts to regain lost ground in the mobile phone business will see the company offering two different versions of its operating system next year.
The company will continue to broadly sell Windows Mobile 6.5 to a large variety of handset makers, while working more closely with several handset makers to sell phones built on a new version of Windows Mobile that has been several years in the making, according to a source familiar with the company's plans.
While Windows Mobile 6.5 is a fairly interim update to the mobile operating system that Microsoft has been selling, Microsoft has also been working on more radical efforts to overhaul the operating system. Both its plans for Windows Mobile 7 and its long-running "Pink" project aim to match the kinds of experiences seen on the iPhone and Android, using more advanced voice and touch interfaces and higher-end hardware.
Microsoft demonstrated Windows Mobile 6.5 at the GSMA Mobile World Congress in Barcelona. That interim update to Windows Mobile will start arriving on phones this fall, while a more radical overhaul of Redmond's cell phone OS is due next year.
(Credit: Marguerite Reardon/CNET News)A Digitimes report this week called the effort a "dual-platform" strategy, although I'm not sure I'd use that term to describe two versions of Windows Mobile being sold at the same time.
What is clear is that Microsoft needs to do something serious if it hopes to live up to its mobile ambitions. For years now, the company has made rather modest updates to the Windows Mobile operating system, which dates back to the days of code powered PDAs and other organizers that were neither phones nor, in some cases, even connected to the Internet.
In that same time, Palm has gone back to the drawing board and reinvented itself with the WebOS-based Pre, while the iPhone and Android have entered the market and even Research In Motion has arguably done more to capture consumer interest than has Microsoft.
Internally, Redmond has shifted a number of its people into the mobile unit. In addition to former server executive Andy Lees, who now runs the phone business, former Mac Business unit chief Roz Ho has been leading a top secret "premium mobile experiences" team responsible for some of the "Pink" work. The company purchased Danger, known for creating the teen-centered T-Mobile Sidekick, and Ho heads that unit as well.
The software maker has also tapped folks from its Tellme unit to help bring improved voice recognition capability into Windows Mobile.
Call waiting
Microsoft has been working on Windows Mobile 7 for what now seems like an eternity, especially in the mobile world. The product was supposed to be in phone makers' hands by early this year, but has suffered a number of delays.
With shares of Research In Motion among those that have seen a massive drop in recent months, Reuters on Friday made the case that the company could make a juicy acquisition target for Microsoft.
There are several reasons that could lead one to that conclusion. RIM is strong in the corporate phone arena, the area of most interest for Microsoft. Microsoft's OS has had trouble keeping pace feature-wise and its next version, Windows Mobile 7, is running quite late. And, of course, the RIM shares that were trading near $150 a few months ago are now at around $53.
That said, I'm not seeing it. The company already has too many mobile operating systems. Microsoft has already scooped up Danger, which uses its own operating system for the T-Mobile Sidekick.
As longtime analyst Michael Gartenberg notes, Microsoft already has a strong product for taking corporate mail onto phones and buying RIM would put the company further in the device-making business.
Plus, even with the recent drop in RIM's shares, the company is still valued at north of $30 billion. For that price, Microsoft could afford to offer Yahoo nearly twice its current value. And Microsoft's online business is hurting for market share way more than the mobile unit.
Anyway, that's my take. What do you think? Sound off in the comments section or drop me a note.
Microsoft has informed some of its partners that it has had to delay Windows Mobile 7, a much anticipated update to its cell phone operating system.
Although Microsoft has not publicly said when to expect Windows Mobile 7, partners who had expected to have a final release in their hands by early next year have been told now that it won't be ready until the second half of next year, sources told CNET News.
The delay is a significant blow for the software maker, which has been counting on the next version of Windows Mobile to enable devices that better rival Apple's iPhone. Among the features widely expected to be part of the release is advanced gesture recognition, perhaps along the lines of the iPhone, but possibly also using the camera as a means for reading gestures. Microsoft's Tellme unit, which focuses on speech input, has also been working on Windows Mobile 7 features.
Windows Mobile 7 is expected to be a dramatic improvement over 6.1, shown here, but when will it arrive?
(Credit: Microsoft)The delay also comes amid stepped-up competition. Google is preparing Tuesday to launch the first phone running its Android operating system, while Apple has its updated iPhone 3G, and new models are also debuting from BlackBerry maker Research In Motion.
Microsoft, for its part, declined to comment on its plans. In an interview, group product manager Scott Rockfeld noted that CEO Steve Ballmer and mobile unit head Andy Lees did meet with 17 of the company's largest cell phone maker and carrier partners.
"They all expressed their excitement of what we are doing in the short term and the long term," Rockfeld said.
Microsoft is not expected to have a major update to its core operating system ahead of Windows Mobile 7. However, other improvements are expected to debut sooner, most notably an improved browser that brings the rendering engine of Internet Explorer 6 onto Windows Mobile. That update, still expected this year, should pave the way for Windows Mobile phones to display rich Web pages, including those that are home to Flash content and Ajax applications.
In addition, a number of carriers and handset makers have been working with Microsoft to add new touch interfaces and other features, separate from Microsoft's operating system updates. The T-Mobile Shadow was one of the first devices to benefit from such work, while more recent products from HTC also have their own custom interfaces above and beyond those included in the most recent version of Windows Mobile.
"Customers don't have to sit back and wait," Rockfeld said. "There's tons of stuff coming from us and our partners."
Rockfeld also tried to make the case that Microsoft's business model is friendlier to hardware makers and cell phone carriers than those of rivals, including Google.
"The thing that they are trying to do is they are trying to own the services," Rockfeld said, saying that is a move that has plenty of carriers worried. "They don't want to sit there and just become a dumb pipe."
Microsoft, he said, is willing to work with carriers to power their own services. "We're happy sharing the limelight," he said.
As for Windows Mobile 7, Microsoft has said very little publicly. Ballmer did make reference to it in a speech to enthusiasts in April.
During the speech, he talked about how Windows Mobile would outsell Apple and RIM during 2008. He then added: "And I think that certainly this should be a good year for us for sales, but the work we're doing on Windows Mobile 7, which is the next major release of Windows Mobile, not just in the Windows Mobile team, but across Windows Mobile, in Silverlight, the development platform, the e-mail, the back-end, I think you'll continue to see that as an area of major excitement and innovation for the company as we move forward."
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