One of the criticisms of the new Windows Mobile 6.5 is that its clearly a stop gap solution while Microsoft reacts, rather clumsily, to the new smartphone expectation thrown up by the likes of the iPhone and Android.
Windows Mobile 7 was pushed back until 2010, though screenshots have leaked out showing some early images of the Marketplace (Microsoft's answer to the App Store), a chat application and the rumoured Zune multimedia application.
Most importantly, it seems Microsoft has finally broken away from the need to make its mobile OS look like the desktop system, which should allow for a lot more flexibility in the operation of WinMo7 powered devices.
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