Windows phone 7 updates

Microsoft Corp. (MSFT) Monday announced the release of a new version of its smartphone operating system, Windows Phone 7 Series.

Device makers have already started developing phones using the new software, with the first ones set to become available in the second half of 2010, the U.S. software company said.

This version of its mobile operating system will have a newly designed homescreen and elements from Microsoft’s Zune HD music player and Xbox console. The Office software has been redesigned as well, and Microsoft’s search engine, Bing, is also integrated into the system.

Windows Phone 7 Series replaces Windows Mobile 6.5. Despite being used by handset makers such as HTC Corp. (2498.TW), Samsung Electronics Co. Ltd. (005930.SE), LG Corp. (003550.SE) and Sony Ericsson, the new operating system’s predecessor is only ranked fourth in the smartphone market, according to research conducted by U.S. firm Gartner.

The gap in the market between Windows Mobile and the three leading systems–Apple Inc.’s (AAPL) iPhone, Symbian and Android–could also grow in coming years, according to Gartner, which predicts Windows Mobile could fall to fifth place by 2013.

“The primary goal of Windows Mobile 7 is clearly to address Microsoft’s shortcomings in the consumer mobile market. All plaudits for their persistence aside, in my view this is their final chance to get it right,” Charles Golvin of Forrester Research said.

Company Web site: www.microsoft.com