Speaking at the Citigroup technology conference in New York, Melinda (Mindy) Mount, corporate vice president and chief financial officer of Microsoft's entertainment and device division, spoke about the devices she is responsible for, which accounts for about 12 percent of the company's revenue.
On the Windows Mobile business, Mount said that as she breaks down the entertainment and devices division it's clear that Windows Mobile holds the most promise.

Mount added that mobile is the business with the most opportunity because as it plays well with other Microsoft strengths: Scale, software and services. It also connects well with Microsoft's back-end applications such as Exchange:

"We really want mass and scale. If you have connections to people that will drive the opportunity to future revenue," said Mount.
Mount acknowledged that Windows Mobile "has come from an enterprise place," but may need more of a graphical treatment like the iPhone has. "Clearly we do identify Mobile being more integrated with photos and music. It's a natural thing to have in our product roadmap," said Mount.

Will there be a handset in Microsoft's future? When asked if there will there be a handset in Microsoft's future Mount said it's possible in the future (Think Zune phone).
But there are no immediate plans for Microsoft to get in the game, but there may be a need in the future. And the precedent is set since Zune's software, hardware and services are integrated and ditto for the Xbox.

For now though Windows Mobile gets the focus. Let us hope Windows Mobile will really get the shift - from a business centric product to a mass-market compatible product.

Cheers ~ Arne