Ballmer admits Microsoft "screwed up with Windows Mobile"

As Microsoft continues to take a beating over its mobile OS, Microsoft CEO Steve Ballmer made a rather frank admission, not to the press of course, that Microsoft "screwed up with Windows Mobile."

Ballmer supposedly made that remark and others at the company's Venture Capital Summit last week. Reporters weren't allowed, but tweeting venture capitalists were. Ballmer said that he wished Windows Mobile 7 was already here (even as WinMo 6.5 hasn't launched yet) and he shook up the Windows Mobile team, according to a tweet from VC Paul Jozefak. WinMo 7 won't be out until next year and this is supposed to be the platform that actually leapfrog's the iPhone and Android platforms.

I suppose we can squash speculation that Microsoft plans to bail on the mobile operating system business--at least not until WinMo 7 is out. Until then, it has to make the best of WinMo 6.5 and hope handset makers hang on until next year. Microsoft has touted the enhanced browsing features of WinMo 6.5.

Research firm CCS Insight recently noted that Windows Mobile may get a boost from the release next month of version 6.5, but that "we question licensees' long-term commitment to Microsoft's platform." The firm goes on to list an alarming number of device-makers that have shifted their focus to Android. Last week Palm dropped WinMo in favor of its own webOS platform. Motorola, a heavy WinMo user in its previous smartphone attempts, is betting primarily on Android, while Microsoft's first and biggest licensee HTC continues to put its efforts into Android.  

"CCS Insight predicts that sales of HTC Android devices could outnumber those of its Windows Mobile products in 2010," the firm said. "This is undoubtedly a worrying prospect for Microsoft given its current reliance on HTC as its biggest licensee."

LG, however, recently promised to release 50 WinMo devices, while Samsung the world's second-largest handset maker remains a Windows Mobile licensee. With WinMo 6.5 expected to be out in October, the next few months should give a pretty good picture of whether Microsoft is turning things around. - Lynnette