Windows Phone 7 Fails To Halt Microsoft's Mobile SlideWindows Phone 7 Fails To Halt Microsoft's Mobile Slide

Despite the buzz surrounding its launch of the Windows Phone 7 OS last November, Microsoft continues to fall farther behind rivals Apple and Google in the smartphone market, according to data released Monday.

Microsoft's share of U.S. smartphone platforms slipped 1.7%, to 8%, during the three months ended Jan. 31, according to market watcher comScore. Over the same period, Google Android's share increased 7.7%, to 31.2%, while Apple's iPhone held steady—increasing .1% to 24.7%.

The biggest quarterly falloff in market share belonged to Research In Motion, which saw its stake decline 5.4% to 30.4%.

The new data surely comes as a disappointment to Microsoft, which was counting on Windows Phone 7 to restore its relevance in the increasingly crucial smartphone arena. Backed by a multimillion dollar ad campaign and events around the country, Microsoft launched Windows Phone 7 devices from HTC, Samsung, LG, and Dell on Nov. 8 with carrier partners AT&T and T-Mobile.

The company pitched Windows Phone 7's "Smart Tiles", which deliver instant messages, e-mails, and social networking updates to the home screen in real time, as a way for users to instantly get the information they need without getting lost in a sea of icons.

It also touted Windows Phone 7's direct integration with other Microsoft products and services, like the Office productivity suite and the Xbox Live entertainment network. But comScore's new data shows that, despite a number of positive reviews from critics, Windows Phone 7 has failed to capture the hearts and minds of consumers and business users.

Still, Microsoft isn't giving up the fight. The company last month struck a deal with Nokia under which the Finnish company agreed to use Windows Phone 7 as the default OS throughout its smartphone lineup. That could boost Microsoft's share of the global mobile market, where Nokia remains the leader in terms of units shipped despite a falloff in recent quarters.

The companies have conceded, however, that their deal is preliminary and consumers may not see any Windows Phone 7-powered Nokia phones in stores until 2012. Microsoft shares were off 1.18%, to $25.65, in afternoon trading Monday.