Microsoft News Tracker

Of late there has been a litany of bad news for Microsoft’s Windows Mobile smart phone operating system:

• In the 4Q earnings report, Windows Mobile was part of the unsegmented part of Microsoft’s Entertainment and Devices division whose revenues dropped 42% and Windows Mobile was specifically called out for increased headcount expenses.
• In yesterday’s Microsoft Financial Analyst Meeting 2009, Windows Mobile was treated like a problem child by Steve Ballmer:

  "Let me just say it was a tough year on succeeding in phones. Mostly our own issues, frankly. Mostly our own issues. And really driving our execution the right way at the right speed. We’ve readjusted some of our plans. Robbie Bach is going to talk some about that."

  and Bach said:

  “To date, we haven’t done as good a job as I would like building relationships and getting the right integration with our hardware partners,” Bach said. “You’re going to see dramatic improvement in integration.”

• Windows Mobile 7 is late; the interim gap filler, Windows Mobile 6.5, won’t appear until October 2009; and long time Windows Mobile hardware vendors like Motorola are jumping ship for Google Android.

So what’s to be done? Robbie Bach (same link as above) says, "You’ll see our execution rhythm pick up and the quality of our execution improve." There is always room for a turnaround, but it won’t happen soon apparently. In the meantime, mobile is yet another of Steve Ballmer’s big bets that is sucking cash and not paying off.