Windows Phone 7 fails to impress in Microsoft battle against Apple iPhone

By Simon Duke

Apple's iPhone has blindsided not only Microsoft

Microsoft's attempts to regain the upper hand from arch-rival Apple in the mobile phone wars descended into farce yesterday with a shambolic launch of its flagship service.

In scenes reminiscent of a nightclub on a Friday night, scores of reporters and industry analysts were left to queue outside in the rain as the software giant's handlers blocked their way into the debut of its operating system at Barcelona's Hotel Catalonia.

To many, the delayed launch

The platform incorporates the group's Xbox Live online games and Zune music service, but Microsoft could struggle to make up ground it has lost to Apple's iPhone in the high-end mobile phone market

The operating system, unveiled at the Mobile World Congress yesterday, caps a dismal year for the world's biggest technology firm. Microsoft has seen its share of the market for smartphones plunge to 7.9pc, compared to 12.5pc a year ago, according to industry analysts at ABI Research.

But Microsoft is not the only traditional mobile phone powerhouse to have been blindsided by Apple's explosive entry into their domain three years ago.

Nokia and US chip giant Intel yesterday unveiled a software platform for mobile phones and laptop computers in a bid to stem the tide of revenues cascading towards Apple. Their aim is to tap into the burgeoning demand for 'applications' - programmes that transform a mobile phones into anything from a satnav to a games console.

The tie-up came as 24 of the world's largest mobile operators yesterday clubbed together to grab a bigger slice of the £4bn a year applications market.

The Nokia and Intel alliance could have worrying ramifications for Britain's ARM Holdings, the microchip designer that was recently elevated to the FTSE 100.

While the Intel and Nokia alliance is currently limited to software, analysts believe the US firm could end up supplying the world's largest handset manufacturer with microchips, in the process jostling ARM aside.

Born out of Acorn Computers, ARM is one of the world's leading designers of the microchips that run mobile phones.

Its designs are used in most of the world's handsets, including the iPhone. ARM shares fell 2.4p to 194.9p.


source: dailymail