Microsoft executive Robbie Bach told the press that the company isn't interested in creating an iPhone clone, instead the firm will focus on the development of the Windows Mobile operating system:
"We don't make phones ourselves. We don't have any plans to make phones ourselves. Our focus is on the belief that a phone is a very personal thing. Different people want different types of phones," Bach said during the interview.
Microsoft will instead focus on Windows Mobile, which has shipped on 20 million mobile devices already. When asked about Steve Jobs' announcement of the new 3G iPhone, Bach said Microsoft already ships "lots" of 3G phones that are powered by the Windows Mobile operating system.
Furthermore, Microsoft expects cell phones shipping with Windows Mobile will outsell the iPhone and RIM's BlackBerry smart phones, which use the OS X and a proprietary OS provided by RIM.
The demand for more interactive software will increase while the cell phone market, most notably smart phones, continues to rise.
"In general, what you are seeing in that phone space is tremendous growth in what people have called smart phones. (It's) growing dramatically. That means more opportunity for us. There is more opportunity for services on top of those phones. There is more opportunity for a richer experience. It's not just about the phone. It's about browsing. It's about music. It's about video. It's about e-mails, text messaging and photos."