Microsoft unveils Windows Phone 8 breakthrough features

• Newest models to arrive in stores in coming weeks
• Carriers, handset makers have vested interest in Windows' succeeding
• Customizable start screen could be a difference maker

Microsoft this morning briefed reporters in San Francisco on Windows Phone 8. Over breakfast burritos and Bloody Marys, the software giant provided more details about the cool new bells and whistles it will have when handsets actually start arriving at AT&T, Verizon, T-Mobile, Best Buy and other retail outlets in the next few weeks.

The event followed last Friday's delivery of the first Windows 8 desktops, laptops and the all new Surface touch tablet to store shelves.

Windows Phone 8 will use the same interactive touch tile interface now rolling out on the full range of Windows 8 computing devices. The latest handset models are being readied for market by Nokia and HTC.

This could be Microsoft's last best chance to deliver a smartphone that can truly compete against Google's hot-selling Android, and Apple's iconic iPhone.

"Perhaps for the first time we are going to see hardware on par with iOS and Android devices in terms of computing power, screen resolutions, cameras and taking advantage of advanced network bandwidth known as LTE," says Al Hilwa, IDC analyst who covers applications development software. "Support for SD cards and NFC (near field communication) is even ahead of the iPhone."

Google made Android the globe's hottest selling smartphone platform by going with a wide open operating system which has resulted in more than 100 different models, with an endless array of features. The headliner of the moment: the Samsung Galaxy S III, which, like the Windows Phone, also beats the iPhone offering expandable memory and the ability to share data by tapping two handsets together.

Apple has successfully infused the iPhone 5 with a premium aura, promoting its thin case and big screen as must have features. Microsoft's theme this morning was all about the start screen and the integration of Microsoft Office and Xbox Live in Windows Phone 8.

Microsoft evangelists are preaching that the start screen represents a breakthrough in personalization. They contend that Windows Phone 8 will be far more customizable that any Droid handset or the iPhone 5.

Windows Phone 8 will introduce three sizes of much more interactive touch tiles, says senior product manager Greg Sullivan. "We've improved the notion of using touch tiles pretty dramatically," he says. "The apps that light up are much more dynamic and have much more information that's relevant to the user."

Sullivan predicts personalization will be a difference maker. "You can really customize and make the phone a reflection of what you care about in ways that aren't possible on the other platforms."

A key as to whether Microsoft can get to within shouting distance of Google or Apple in this space may be how quickly and pervasively application developers jump on board.

"I am a bit concerned about the effort that existing Windows Phone developers will need to evolve their WP7 apps to into WP8," Hilwa says. "I will also be looking for how developers will be able to support phone and tablet with a single universal app and a single app store. The better they are able to meld tablet and phone app models, the more likely Microsoft will be able to translate its strength in PCs into tablets and phones."

Microsoft also has yet to solve the problem of getting salespeople at the carrier stores and big box electronics stores to go the extra mile to pitch Windows Phone 8, instead of grabbing the easy commission selling the Galaxy S III or iPhone.

Officials at Nokia and HTC have expressed enthusiasm for promoting Windows Phone 8. And AT&T and other carriers have a vested interest in seeing it become a success, since that would serve as a way to fight against the steep subsidies and royalties Apple gets away with charging for the iPhone.

"Marketing and distribution are very important," Hilwa observes. "At the end of the day a strong campaign to educate and compensate salespeople is key to winning."

Toward that end Microsoft has put extra emphasis on training sales people and doing point of sale promotions, Sullivan says.

"There's a whole list of things were doing," he says. "One of the things were most encouraged by is interested our mobile partners themselves have been. Verizon will carry three models in very high profile positions, and T-Mobile and AT&T are
really putting a significant effort into this."