Microsoft debuts Windows Phone 7, HTC banks on it.

HTC Corp expects five handsets using Microsoft Windows Phone 7 operating system will add to the momentum from Google Inc's Android that's led the SmartPhone maker to record sales this year. HTC, the world's largest maker of phones using either platform, currently sells more Android phones than those using Windows, Chief Executive Officer Peter Chou. Microsoft's Windows Phone 7, released yesterday, marks the latest attempt by the world's largest software maker to claw back share of the mobile operating system market from Android. Google-based models helped HTC post record sales in the past two quarters, spurring a doubling in the Taiwan company's share price this year. Microsoft can come back, said Chou, whose company in 2002 became the first to release a SmartPhone using Microsoft's mobile platform, and was the first with an Android handset in 2008. Microsoft has a lot of value, so the industry should definitely not underestimate them. HTC posted NT$76 billion ($2.5 billion) in revenue for the third quarter, its second consecutive period of record sales. HTC's shipments of Android handsets overtook those using Windows by the first quarter of this year, Chou said. Shipments this year through September already surpassed the 11.7 million units the company sold in 2009, with growth to remain strong this quarter, Chou told reporters Oct 7.

Android had a 32 percent share of the US market for smartphones bought in the past six months, surpassing Apple Inc's iPhone and Research In Motion Ltd's Blackberry platforms, according to August data from Nielsen Co released Oct 5. Microsoft's Windows Mobile, the precursor to Windows Phone 7, ranked outside the top three among sales of smartphones, handsets that can connect to the Internet and play music and videos. HTC's Windows Phone 7 models will each carry the prefix HTC7 and include handsets with a slide-up speaker, surround sound, and high-definition display, Chou said. HTC's devices will be available globally, he said. Samsung Electronics Co and LG Electronics Inc, Korea's two largest SmartPhone makers, are among companies worldwide that will sell new models using Windows Phone 7. LG Electronics will offer one model globally, and a further handset specifically for AT&T Inc, it said in a statement. Although the market remains doubtful about the WP7's success, one should not ignore Microsoft's substantial operating system and user interface reshuffle and its heavy marketing campaign in coming months, Daniel Chang, who rates HTC outperform at Macquarie Group Ltd in Taipei wrote in an Oct 6 report. HTC's leadership in this space could become an advantage if the WP7 grabs the market's attention.

Microsoft's new phone platform includes features from its Xbox 360 game system, Zune media players and Office suite of software, rivaling offerings from Android-based handsets and Apple's iPhone. Microsoft has put a lot of effort to get Xbox mobile and Zune and these additional features put in to make this platform attractive, Chou said. The market will welcome this platform. However, because the other platform is pretty strong in the market I think it will take some time to gain market share.

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