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Microsoft just unveiled its new Windows Phone 7.

Apple Iphone

Microsoft (NASDAQ:MSFT) is known for its operating systems and has previously avoided entering the handset market. Microsoft will now have to compete against RIM's Blackberry (RIMM), Apple (NASDAQ:AAPL), Nokia (NYSE:NOK), Google (NASDAQ:GOOG) and Palm (PALM) for a share of the smartphone market. It will be interesting to see how well Microsoft’s entry into the smartphone market is received.

Exact details are not known about the Windows 7 phone. But here is what is known so far. The phone will be released during the 2010 holiday season. Windows Phone 7 will be Xbox live and Zune media and music capable. Windows Phone 7 will be broken down into hubs. Hubs are designed to gather like features and functions in one place. Windows Phone 7 contains the following hubs:

People Hub- social networking integration (Integrates contacts from Facebook, Twitter, Windows Live, Gmail)

Office Hub - business applications (Office, Outlook, Workspace)

Games Hub- (Many Xbox live games)

Music & Video Hub- (Zune HD Music)

Pictures Hub - (All Stored Images)

Marketplace Hub - (Shopping & Applications)

If Microsoft can pull this off properly, the Windows Phone 7 launch might open up a whole new market for the software giant. A successful launch could lead to:

1. Increased search engine market share - It stands to reason that Bing will be the default search engine for all Windows 7 phones. According to ZDNet, the phone will have a Bing button on the display.

2. Increased subscriptions to Zune marketplace.

3. Increased Xbox Live subscriptions.

For a more detailed look at the new Windows Phone 7 check out these sites:

Engadget

ZDNet

Source: Microsoft's Windows Phone 7 vs. Apple's iPhone: A New Windows World?