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The Bloomberg story also suggests that the new version of Windows will also work on Intel and AMD processors intended for tablets and smartphones.
Microsoft's track record with mobile devices hasn't been as spectacular as its success on the desktop - Pocket PC and Windows Mobile didn't exactly set the world alight, the Zune has extremely limited geographical distribution, and Kin was withdrawn just a couple of months after going on sale.
And while Microsoft this week claimed that "phone manufacturers sold over 1.5 million phones [running Windows Phone 7] in the first six weeks", it seems this figure refers to sales into the channel (ie, carriers, distributors and retailers), not actual sales to end users.
Still, Windows Phone 7 did seem to get a relatively enthusiastic reception. And Windows 7 itself is much more highly regarded than its predecessor, Windows Vista. (Those with a philosophical bent towards open source will never be satisfied with Microsoft, so we'll take their objections as given.)
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