Microsoft has done what many were not expecting it to do – it has admitted the supremacy of iPhone in the mobile arena. This interested development took place during the Q&A session of the Connect! technology summit, which was held in London. Microsoft also had news regarding Windows Mobile , the IT giants have pushed the Windows Mobile 7 release date to late 2010.

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Phil Moore, Microsoft’s UK head of mobility complimented Apple and said:

We’re still playing catch-up. When Apple came on to the scene a couple of years ago, it threw away the rulebook and reinvented it. We unfortunately don’t have that luxury. It’s true, Apple caught us all napping. It launched something that was very iconic, new and unseen with a very good user interface.

The delayed arrival  of Windows Mobile 7 means that we won’t be seeing any Windows Mobile 7 enabled device in the first half of 2010 which may even be extended to Q3 of the same year. So, no big announcements are expected related to Microsoft‘s mobile OS from the World Mobile Congress 2010 event to be held in February.

Moore, said the next version of WinMo will target the enterprise and consumer users and will bring  an improved and a greater user friendly touch screen experience.

It has been put back until late next year but it is definitely coming. You’re going to see a lot more on Windows Mobile 7. Giving the enterprise users and consumers what they want will be part of Windows Mobile 7. You’ll get flexibility on a much easier touch UI.

They intend to give Apple a fight, but will this undesirable delay help them achieve this very task. It seems that Microsoft’s Mobile division is in for a fight of their life in the year 2010.