"Windows Mobile lost 28 percent of its smartphone market share between last year's third quarter and this year's third quarter, according to market researcher Gartner.

Figures released Thursday by Gartner show that Microsoft's mobile OS had 11 percent of the global smartphone market in Q3 2008. A year later, it had 7.9 percent. Meanwhile, the iPhone's share rose from 12.9 percent to 17.1 percent, and Research In Motion's share jumped from 16 percent to 20.8 percent."

http://news.cnet.com/8301-1035_3-10397897-94.html

If its losing market share and facing a new competitor with Google Android as well as the upsurge in market share from other devices then its also quite likely that the margins per Windows Mobile phone are falling as well as they drop the price to compete. This wasn't a division that was making money when it was merged with EDD so its quite possible that with added investment being required of the division to stay relevant that what was once a division breaking even is now a source of losses hidden amongst the other profit making endeavours. Windows mobile 7 is coming though and it may be able to ride the coat tails of Windows 7's success but at the moment they aren't doing that well based on what they have released.

As for the keyboard/mice peripheral share all I have is an anecdote as I can't pull up data to support/disprove it. I've been doing a lot of computer shopping recently to build a few computers and every single computer store or computer department I went to had significantly more Logitech keyboards/mice than Microsoft keyboards and there were fewer Microsoft keyboards/mice SKUs than I remember. Can anyone else tell me more about this?

Windows mobile is my least favorite of all the mobile OS's it just seems so slow compared to others.

The only time I've heard of it is the advertisement 'get Windows on your phone... and start doing more!' which means that if its slow then you're really doing less not more. Hey theres a slogan for Microsoft! Less is more...

it always had low marketshare.
nokia symbian too strong in europe with that they  over 50% of marketshare worldwide.

neither android or the iphone have enough marketshare, even with blackberry popularity , its not half symbian.

I have a windows mobile phone and it is kinda slow...still prefer it over an iphone.

The last three phones I had were Iphone but I really stat to think about buying a Nokia again because I need a full keyboard the typing is much better with keyboard. I was Symbian user only almost the whole decade until the iphone released. My next phone will probably  be a Symbian S60 5th edition. unless apple releases something new.

windows mobile = fail for me.

The WinMo phone I recently ditched was garbage. They have a lot to do if they want to be relevant again in the smart phone market. I just got a new Droid Eris and I am loving it. I am using it right now actually. I have no idea about the accessories.

You're Googling... Oh the horror! My respect for you just fell 0.00001%.

:) Right after saying good things about my phone, I have trouble quoting on here. Perhaps it understood the content and realized the mothership was being insulted.

I dunno... its not that bad. True, they cant compete at this point with their rivals, but IMO WM7 could change that. I allways felt that it has way to few aplications when compared with Apple or Nokia ( still havent tried a Droid) and as someone esle mentioned it they are a bit slow.

On the hardware side... they where never that big. I remember heaving a MS keyboard back when I was like 8 or something... since then I barely saw any here...