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If you can’t beat ‘em, join ‘em.  This seems to be Microsoft’s new mantra for mobile. 

Microsoft missed the initial smartphone wave in spite of having a decade head start with Windows Mobile and the Pocket PC.  Now Microsoft is playing a hurried game of catchup with Windows Phone 7. 

But the immediate future is not looking good for Windows Phone.  The most recent data from comScore shows that Microsoft’s share of smartphone subscribers is only 6% and continues to fall.  Whereas Android’s share is 38% and rising at a fast clip.  Apple’s 27% share of smartphone subscribers is also growing, though at a slower rate.

The Android explosion is not all bad news for Microsoft, however.  MobileCrunch reports that Microsoft is earning 5 times more revenue from its patents on components of the Android operating system than it is from Windows Phone.  That’s $150 million from Android versus $30 million from Windows Phone.

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Microsoft will soon be launching an approved Windows Phone unlocking service as part of ChevronWP7 Labs.  This allows developers to immediately launch apps on the Windows Phone 7 platform, without waiting for official Microsoft approval.  This also allows users to run these “homebrew” apps on their Windows phones.

The ChevronWP7 service will require developers to pay a small fee via PayPal to offset costs, but it should be much less than the $99 annual fee to release apps in the WP7 App Hub.

ChevronWP7 comes with Microsoft’s full blessing and support, which means homebrew apps shouldn’t break in future Windows Phone updates. Microsoft should be commended for opening up Windows Phone 7. This leaves Apple as the only smartphone developer that does not officially support homebrew apps.

ChevronWP7 Labs Announcement
ChevronWP7 on Twitter

In spite of having a decade head start with Windows Mobile and the Pocket PC, Microsoft somehow completely missed the initial smartphone wave and is now playing a desperate game of catchup. 

Apple released its first iPhone in 2007, essentially defined the smartphone ecosystem, and jumped to an impressive early lead.  But with a more open platform and cheaper hardware, Google Android has grabbed a commanding 35% share of smartphone subscribers.  Apple is holding flat around 25%. 

Microsoft entered the smartphone market late in 2010 with Windows Phone 7 (WP7), which was already generations behind competing platforms and lacked key features like copy/paste and multitasking.  WP7 is also incompatible with previous versions of Windows Mobile, so existing users have no allegiance to the new Windows phones, and hence are just as likely to switch to iPhone or Android.  As a result, Microsoft’s share of the smartphone market is only 8% and dropping.

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Microsoft has stated that its Windows Phone Marketplace will reject any apps that use the GNU General Public License (GPL) and similar licenses.  As stated in Article 5 of Microsoft’s Application Provider Agreement:

“The Application must not include software, documentation, or other materials that, in whole or in part, are governed by or subject to an Excluded License, or that would otherwise cause the Application to be subject to the terms of an Excluded License.”

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