Windows Phone 7 OS Market Share Gains Still A Ways Off

A growing number of analysts may be forecasting that Windows Phone 7 could overtake every mobile platform except Android within a few years, but Microsoft is "managing expectations." CEO Steve Ballmer admitted to the firm's Worldwide Partner Conference that the new operating system has had limited impact so far. 'In a year, we've gone from very small to …. very small."

Many think the Nokia deal, replacing Symbian with Windows Phone 7, will change all that, and in dramatic fashion, giving the WP7 operating system a huge boost in sales volume. Pyramid Research even believes WP7 will overtake Android, on the strength of Nokia's sales volume.

Of course, Microsoft's coziness with Nokia is likely to lead other traditional licensees to back off a bit, as it appears Nokia will have unusual rights to modify the way WP7 operates, compared to other licensees.

Wisely, or fortuitously, Microsoft did not decide to strike the Nokia deal with Research in Motion, as many had been suggesting for years. RIM has been losing market share since 2008, in large part because of perceived weakness in the broader smart phone area, despite the historic strength in business-focused messaging devices.

WP7 is "very small", admits Ballmer - Rethink Wireless: