[HD2 General] Bulldog:
Well I think we need to go back to understand the entire story little bit more.

Microsoft has developed Windows CE platform in first place for PDA functionality and especially for Corporative usage. It was never meant to be in service as Phone/multimedia Platform. As I am sure most of us will remember during that time market leaders for such devices were companies like Compaq or HP.

HTC started as contract manufacturer for such devices. It has built /manufactured for those companies (Compaq and HP) “mobile computers” Somehow early 2000 they had the Great idea to combine a PDA with functionality of a Mobile phone. Obviously 2001-2002 they came up with first device. From then on the Window Mobile was born.

HTC with limited recourses and been busy with developing the hardware has relied almost completely on Microsoft on software. For Microsoft WM business never been really important it was just a tool for their Main Business. MS were sitting high in the clouds making allot of money with Server and PC Operation Software’s. Bill Gates was so busy with his dream putting in every house hold a PC that he has slept the Internet boom and as well the upcoming Multimedia market.

However they had their first competitor with RIM/Blackberry gaining on market share on business Email user. Under Pressure from corporative demand, Microsoft has developed fast a weapon for RIMS main market with implementing direct pushmail. That was important point for Microsoft as they were very interested to protect and increase market share for corporative Server and PC OS. Those are the areas that Microsoft makes real money and they have only focused on those nothing else.

MS short minded and not putting eyes in to future has clearly missed the Business opportunity to push and improve the WM platform further early. Therefore Windows Mobile were stuck been in first place a PDA and a little phone and multimedia Device. Though it has much functionality and is able to do so many things it was and IT IS difficult to use by average Joe which is not very technical.

Then Apple came in to the Game. Been the market leader of MP3 with IPod and always eye on Internet and on Multimedia They had the Great idea to combine multimedia device with phone/internet functionality. Now, we all know they put those things in a Device with revolutionary UI. They focused and made a device that had things that Windows Mobile did not have. So yes, we can truly say Ones negative point is others Strong point!

However that what Apple put together with easy and eye Candy UI; able to download Songs etc. etc. has attracted the Younger generation but also none technical consumer which wanted to do things with few simple clicks. Beside Of course that Apple is brilliant Marketing Company has helped that the Iphone become a Status Icon.

Change of consumer expectation from a Mobile Device has lead that Symbian OS losing large market share to Iphone , RIM and also to WM.

As mentioned RIMS obviously gain his market share mainly trough corporative Email user but Iphone has made the biggest market gain. The important point was/is; it is gaining market share through normal (none business) consumers.

HTC had suddenly a real competitor with Apple’s Iphone which were gaining huge popularity. As said before Until Iphone has been released HTC was mainly focusing to Hardware and relied on Microsoft for Software. But Microsoft Still did not see the importance to do something with WM.

Been let down by Microsoft HTC started to focus on Software to keep up with Iphone and make the WM platform easier usable. HTC TOUCH had the first major software implementation made by HTC. Now we are seen more and more deeper HTC skinning of the WM platform with HTC Sense (manila).

In HTC perspective Hardware design does not have real competitors and they are the pioneers of the hardware with huge knowledge and experiences.

Furthermore it is not really first priority for a new user what technical specs the device has. For average Joe the device has to function and IT MUST look good.

The importance is now to make the aged WM platform easier usable and attractive to gain Market share AND KEEP UP WITH THE IPHONE. Furthermore in such economical situation they do need to cut corners and keep the cost down. A old Chinese Saying says: IN ORDER TO ABLE TO MAKE CHANGES YOU NEED TO SURVIVE FIRST

Nevertheless I do think that HTC is very disappointed of Microsoft been so slow to improve the WM platform. That leads them to spend more Money and people recourses which puts pressure on their Annual Earnings. Therefore they are putting more attention to Android platform. With Android they will be Independent and drive fully the Hardware but Also the software.