The industry doesn't need Microsoft CEO Steve Ballmer to reveal Windows Phone isn't exactly setting the world alight right now, but his continued willingness to talk frankly about its performance is refreshing.

Speaking during BUILD 2011 in Anaheim, California, Ballmer countered his bullish speech about Windows 8 with a more measured take on its smaller cousin.

Moving on with Mango

"We haven't sold quite as many as I would have liked in the first year," Ballmer told financial analysts, adding "I'm not saying I love where we are but I am very optimistic on where we can be."

Ballmer went on to tell analysts Windows Phone is ready to "kick things to the next level", no doubt referring to the impending launch of Mango, the next major version of the platform.

Following its roll out will come both new handsets from existing OEMs, such as HTC, and from Microsoft's big new partner, Nokia.

"With Nokia we have a dedicated hardware partner that is all-in on Windows Phones," Ballmer added.

"They are not doing something on Android or [any other operating system]."

Nokia's first device, no doubt one of those revealed by a video leak, is expected to launch before the end of the year, Europe first.

[source: AllThingsD]