According to Brendan Barnicle, senior research analyst with Pacific Crest Securities, Microsoft has plans to spend $1 billion on its Windows Phone business during this coming year.   Bill Koefoed, general manager of Microsoft’s investor relations, revealed the plans make the hefty investment in research and development in this year alone.   Even for Microsoft, this represents a significant commitment of approximately 10 percent of the company’s R&D budget.  "In our minds, [Koefoed] ruled out them buying somebody like Palm or RIM. He didn't say it directly ... it's our conclusion.”  Barnicle stated to InternetNews.com.

Speculation regarding Microsoft’s mobile strategy is understandable as the company has struggled with only modest success with string of various mobile offerings.   Just last October it began offering OEM handsets based on Windows Mobile 6.5.  Then in February, it announced its latest Window Phone 7 Series, which may nullify the Window Mobile 6.x product lineup.   So far Microsoft Windows Mobile has managed to secure a meager fourth place showing based on Gartner’s numbers, with 8.7 percent in 2009.   This represents a drop of 3.1 percent since 2008. Meanwhile Apple’s iPhone and RIM’s Blackberry showed continued market share gains in 2009.  Clearly, Microsoft has its challenges going forward.

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