Microsoft's (MSFT) New Mobile Product Is Too Late

Microsoft (MSFT) launched an impressive new version of it mobile operating system. Windows Phone Series 7 will offer Zune multimedia features and game features and functions from the Xbox. Unfortunately, almost no one owns a Zune , so its multimedia options are academic.

Redmond said that Dell (DELL), Garmin, Asus, HTC, Hewlett-Packard (HPQ), LG, Samsung, Sony Ericsson and Toshiba would put the mobile OS on some of their handsets. Carriers that will use the Microsoft product include AT&T (T), T-Mobile USA, Verizon Wireless, Sprint (S), Deutsche Telekom AG (DT), Orange, SFR, Telecom Italia, Telefónica, Telstra, and Vodafone (VOD).

The problem which will probably limit the success of the new Window product is that earlier versions are used by most of the world’s handset companies and cellular systems, but consumers have almost no interest in the OS.
Microsoft has to contend with current operating systems including the dominant Symbian product, a new OS from Intel (INTC) and Nokia (NOK), the OS from RIM (RIMM) which runs that Blackberry, and the Apple mobile OS for the iPhone. The greatest single competitor to Microsoft may be the new Google (GOOG) Android OS which is quickly gaining market share through deals with Motorola (MOT), HTC, and Google’s own handset, the Nexus One.

Microsoft has already been elbowed out of the mobile OS market and its is too crowded with good products for the world’s largest software company to work its way back in.

Douglas A. McIntyre