Microsoft has a relatively long history with mobile operating systems, stretching back to the mid-1990s and Windows CE.

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How Much is Windows Phone 7 Worth? Microsoft released the mobile phone last November, and it didn’t expect it to change the world…and it hasn’t. Since its release Apple’s iPhone has sold over $13 billion worth of iPhones in the last quarter alone. So even Steve Ballmer acknowledged that their mobile phone entry would hardly raise any eyebrows in the area of technical innovation or sales.

600 Million

The latest estimates, and I mean estimates, are that the value of the Windows Phone 7 market for Microsoft is worth around 600 Million. This number comes from looking at one division in Microsoft, the Entertainment and Devices Division, which is worth around  $8.716 billion. Then you subtract from that $8.103 billion of Xbox revenue. The remainder is everything else and that adds up to $613 million. These are estimates because Microsoft has not release actual sales figures about how their Windows Phone 7 has done.

The Nokia Element

While Microsoft is trying to get a handle on the market, one step in that direction came when it teamed up with Nokia as the OEM for the Windows Phone 7 market. Microsoft, in order to sweeten the deal, will let Nokia make adjustments to the mobile phone OS in order to enhance the experience for the consumer. Right now, it appears that the first Windows Phone 7 from Nokia may be similar to the N9 flagship handset.

12 black small cropsm1 How Much is Windows Phone 7 Worth to Microsoft?

The Update Problem

While Microsoft has made efforts to improve it’s phone system, it can’t have a repeat of the bricking debacle that occurred earlier this year. This was the update that occurred in May that left some users unable to work their phone. Microsoft finally fixed the problem, but it couldn’t undo the negative publicity that came from it. Indeed, even offering a Windows Phone 7 handset for $0.01 didn’t change the market. People are very finicky about this, and apparently you only get one shot at success.

For Microsoft’s sake, the Nokia move had better work.

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Earlier this week, Microsoft officially RTM’d Mango (Check out Mike Halsey’s post) and is currently shipping the OS to manufacturers and carriers for testing purposes. It’s widely felt that Windows Phone Mango is set to drop sometime in September, but Windows Phone is just an OS, the other half of the equation is the actual handsets that the OS runs on. We’ve heard and seen leaks and rumors that manufactures are gearing up for a big fall release of devices for the new platform, but a report by DigiTimes is citing sources that a number of Windows Phone device manufacturers are preparing for a September launch to likely go head-to-head with Apple’s rumored iPhone 5.

So far, we have seen actual devices from Samsung, HTC, Acer, ZTE and Fujitsu-Toshiba. And we have seen renderings from LG for a device to drop sometime in 2011. This is likely to be the lineup to launch against the very popular rumored next-iPhone, with insiders noting that manufacturers are preparing “a number of Mango phones, powered by Qualcomm 1.5GHz single-core CPUs with display sizes ranging from 3.8- to 4.7-inch.”

Then there’s Nokia, the proposed savior of the OS. And for that matter, Windows Phone is considered to be the savior of Nokia. After months of shedding mobile market share, Nokia hopes to tie its future to Microsoft and its emerging product. Nokia might be dwindling down in the mobile market, but their mind share in other countries is still very strong. Microsoft hopes to capitalize on this presence by combining the Nokia hardware with the Windows Phone OS. Nokia has now committed to releasing a device in 2011, “at a time when fellow vendors have already heated up the market for Mango phones.”

The latest report by Nielsen shows that Microsoft commands a 9% piece of the smartphone market. This includes both Windows Mobile and the Windows Phone OS and based on the speed at which old Windows Mobile has been ceding market share, the numbers are likely an indicator that Windows Phone is slowly growing and starting to eat up some of those previous users.

So, it’s an exciting time to be following the mobile market and with heavy hitters like Microsoft and Apple set to duel in the Fall, it should be something to watch. We know that hoards of Apple users will be lining up to hand over their cash to get a new iPhone because, well, that’s what they do, but will the rest of the world look to a new and exciting smartphone platform for their next device. We’ll have to wait and see.

I’m curious. I use a  Windows Phone with the current Mango beta and love it. If you are not a Windows Phone user, let me know in the comments what’s keeping you from trying Microsoft’s mobile reboot. Is it a dislike of the Metro UI, a feature that’s lacking, stuck in a current contract, or just don’t trust Microsoft when it comes to mobile. I’d love to hear your thought’s on Windows Phone and what may be keeping you away.

Microsoft and Manufacturers Set to Do Battle In September with iPhone 5 is a post from Windows 7 News & Tips – Latest Microsoft Windows 7 News, Tips, Themes, Wallpapers & Guides. Visit Windows 7 News & Tips for the Latest Microsoft Windows 7 News, Tips, Themes, Wallpapers & Guides.

Get Microsoft Silverlight

If you haven’t seen or tried Bing Vision, it’s pretty cool stuff. Even though iPhone users have had the privilege for more than six months now, Windows Phone Mango users (in some regions) will soon too be able to search book, CD and DVDs by just scanning its cover.

In a presentation about computer vision, Rick Szeliski from Microsoft Research’s Interactive Visual Media group talks a lot about the advancements in computer vision technologies MSR has made in the last decade including but not limited to Kinect. One other recent project of note was called “Lincoln”, by Larry Zitnick, which formed the basis for Bing Vision.

Since Rick tries his best to generalize the algorithms involved, I’ve embedded a clipping of the video above if anyone’s curious about the technology behind it all. Apparently it involves “kd-trees”, not magic.

One other interesting tidbit Rick mentions during the presentation is the fact that whilst recognizing people en mass is hard, it’s already viable for smaller groups like families. The fact that he uses the example of logging in a PC in light of the rumors that Windows 8 will support such a feature is at least note-worthy evidence of the feature’s practicality.



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