genpop.net

Microsoft Corp. is expected to announce a major revamp of its phone software Monday in an attempt to regain momentum in a crucial market where it has been overshadowed.

Chief Executive Steve Ballmer will be speaking at Mobile World Congress in Barcelona, Spain, the world’s largest cellphone trade show, and analysts expect him to reveal Windows Mobile 7. The software could be in phones late this year.

The new software comes as Microsoft, dominant when smart phones were young, has taken a back seat to Research in Motion Ltd.’s BlackBerrys among corporate users and Apple Inc.’s iPhone among consumers.

“They seem to have lost the world’s attention in smart phones,” said Dan Hays at management consulting firm PRTM.

The new software is expected to be more consumer-focused than previous versions, with a simplified user interface, which could be borrowed in part from Microsoft’s well-reviewed — but low-selling — Zune HD media player.

“If that thing had a phone in it . . . that would be a pretty darn good device,” said Charles Golvin, an analyst with Forrester Research. “But my own judgment is that this is kind of their last chance. If Windows Mobile doesn’t get it right this time around, they’re probably toast.”

Windows phones accounted for 9% of smart phones sold worldwide last year, according to research firm In-Stat. That was down from 13.2% in 2008.