Microsoft doesn't appear to understand how poorly they're doing in mobile phones. I watched the Engadget show with Balmer, and he totally played down his earlier statements about how Windows Mobile isn't at all where it should be.
The time it's taking to move from 6.1 to 6.5 to 7 is unacceptably long, and there's rarely an upgrade path for existing phones (at least not an easy one). Compare that to Apple, who puts in major new features in each of their iPhone updates. Or Google, who will have updated Android 3 times in one year. Or Palm, who releases updates like crazy. And none of these companies charge for the updates, and so far they've applied to all the phones released.
And none of this even starts touching on the fact that Windows Mobile is just a terrible OS. Sure, it was one of the first to support apps, but just like the Blackberry it was so hard to find and install those apps.
The one thing I like about Windows Mobile is the home screen. There's a heck of alot you can do with it, and with third party software you can make it super productive with appointments and emails. That's it. That's the extent of it.
Anyway, sorry for the rant. I mostly liked my Windows Mobile phone, but that was almost 3 years ago, it felt outdated then, and they haven't done anything since then but change the home screen to a honeycomb pattern.
Windows Mobile is on its way out. Symbian will be not far behind it. At least, this is how I think things are in the US. I know there are definitely other countries who love the whole stylus thing...
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Matt