Microsoft Chief Admits Firm 'Screwed Up' Windows Mobile

In a remarkable piece of frankness, Microsoft boss Steve Ballmer says the firm has "screwed up" in past efforts to bring Windows to mobile devices. He also reiterated that the firm is not planning to develop its own handsets.

Ballmer's comments about the Windows Mobile operating system came at an event for venture capitalists. Though journalists were not allowed to attend, one delegate, Paul Jozefak, wrote on his Twitter account:

"Ballmer says they screwed up with Windows Mobile. Wishes they had already launched WM7. They completely revamped the team." (Source: twitter.com)

Windows Mobile Budget Edition

Windows Mobile version 7 was due out earlier this year but has been delayed so much that Microsoft is bringing out an interim edition, 6.5, next month. When version 7 finally hits late next year, it will not be retiring 6.5.

Instead, Microsoft plans to drop the price it charges to manufacturers who use that system, the idea being to widen Windows' appeal by making version 7 the flagship system for top-end smartphones and 6.5 the budget edition for more basic handsets.

Microsoft Won't Produce Cellphones

Meanwhile, Ballmer also said Microsoft will not be getting into the mobile hardware market. He told TechCrunch that the firm is only interested in making hardware for comparatively niche markets, such as portable music players and game consoles. His logic: the sheer size of the cellphone market means Microsoft would be unlikely to get the benefits of scale that it gets by dominating the software market. (Source: techcrunch.com)

The marketing decision has been somewhat confusing to stop encouraging manufacturers to brand devices as "Windows Mobile" handsets and, from the release of version 6.5, to simply refer to them as "Windows Phones".

There have also been several rumors that Microsoft is working on producing a handset to rival the iPhone, based around its own Zune music player. However, it now appears that even if such a phone did appear, it would only be through Microsoft licensing software to a manufacturer.