Microsoft ups stakes in smartphone battle

Microsoft yesterday launched the latest version of its mobile phone operating system - Windows Mobile 6.5 - the company's latest weapon in the battle for software dominance across the lucrative smartphone market.

Windows Mobile 6.5 is the mobile device version of Microsoft's flagship Windows operating system, the background software that powers the majority of the world's PCs.

While it has dominated the global computer operating system market for three decades, Microsoft has failed to achieve the same success in the growing smartphone market.

According to IT research firm IDC, Windows Mobile is the fourth most popular mobile operating system behind Nokia's Symbian software, BlackBerry manufacturer Research in Motion's operating system, and Apple's recently updated iPhone software.

Windows Mobile 6.5 adds new functions to the previous version - 6.1 - which aim to mimic similar features that have proved popular on competing phone platforms, particularly the iPhone's.

Microsoft is also hoping that enhancements to the ease of connectivity between the new version of Windows Mobile, its PC-based Windows operating system, its other PC software products, its online services and its X-box games platform will give it an edge over its competitors.

One new feature in the new mobile operating system is Windows Marketplace for Mobile, a portal for downloading games and other applications to run on Windows-based phones.

Apple has enjoyed phenomenal success through its "App Store" portal which last month notched up its 2 billionth application download.

Microsoft also yesterday launched My Phone, an online backup and sharing service for photos, contact details and other information stored on smartphones.

While several mobile phone manufacturers yesterday announced the launch of new smartphones based on the new Windows operating system, none are yet available to buy here.

Telecom will this week launch the HTC Touch Pro 2, which will be sold with the Windows Mobile 6.1 operating system but can be upgraded to the 6.5 version.

Vodafone expects to be selling the first 6.5 device here in about two weeks: the GM 750 from manufacturer LG which has a touch screen and a look and feel similar to the iPhone.

Ursula Lawgun, Microsoft New Zealand's Windows Mobile marketing manager, said other 6.5-based phones would hit the local market next year.

Top-end smartphones, many of which cost more than $1000, are a lucrative high-margin market for manufacturers and an increasingly attractive option for phone buyers as more and more features are packed into the devices.

"Everyone wants to build up and bolster their smartphone portfolio, because that's what drives more dollars for the carrier and that's where the market is going," said Matthew Thornton, an analyst with US-based IT research firm Avian Securities, commenting on Windows Mobile 6.5 launch.

While Windows 6.1 was tweaked to be a more effective business system, Lawgun said one of Microsoft's key aims with Windows Mobile 6.5 was to add more "consumer" functions - such as better ways to access social media websites and other online services - into the operating system.

She said adding consumer friendliness to the new system was important because research suggested that within four years half of all work phones would be purchased by employees, and phone buyers wanted to be able to carry a single device that met both their work and personal requirements.

MOBILE OPERATING SYSTEMS

Selling points for the major operating systems that power the world's mobile phones:

Windows Mobile: Synchronises easily with other Microsoft software and services.

Apple: Well-liked, user-friendly system.

Symbian: Very popular because it is market leader Nokia's software of choice.

Android: Google's operating system; phones that run it integrate well with the company's other services including Google Maps and Gmail.

RIM: The robust business-focused system that powers BlackBerry phones.