Microsoft chief executive Steve Ballmer told reporters at a news conference late last week the company expects to ship its Windows 7 Mobile software later this year.
However, while the software will be available before the end of the year, some analysts have said handsets carrying the OS may not be available in time for the Christmas season.
Additionally, Microsoft has said it intends to launch an app store for users to download and install applications.
Ballmer has said the Windows 7 Mobile software will be a dramatic change from the company’s previous OS instalments, with a new UI design and support for third-party apps.
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The company also hopes to take some of the market back with its new venture. Currently it holds just 6.8% of the mobile market, down from 10.2% a year ago, according to Gartner figures.