Rumor: Microsoft Working on New Windows Mobile? WTF

Microsoft plans to introduce a special version of Windows for low-power mobile devices like tablets at next month’s Consumer Electronics Show, according to multiple reports.

The Wall Street Journal and Bloomberg claim to have both heard that Microsoft will discuss a version of Windows that supports mobile ARM chips and other low-power processors. The Journal adds that the new Windows OS isn’t expected to be available for two years.

My instant reaction to these reports: WTF?

Microsoft already has a new version of Windows designed for mobile devices: Windows Phone 7. The company hired new executives, spent million of dollars on development facilities, rethought its entire mobile strategy and took an entire year to whip up a touch-friendly mobile OS from scratch.

In terms of power and features, Windows Phone 7 hasn’t caught up with Android or iOS yet, but it’s a solid start. It’s certainly more fit for tabletization than the desktop Windows. There are many reasons why a Windows 7– based tablet makes no sense.

Windows Phone 7 is also light-years ahead of Microsoft’s previous mobile OS, Windows Mobile, to say nothing of Windows CE, Microsoft’s first mobile OS, which lives on as an “embedded” OS powering hospital devices, manufacturing equipment, point-of-sale devices, and the like.

So why in the world would Microsoft throw more money and talent at a new mobile version of Windows when it’s already made great progress on a newer, better one?

I like the well-informed Mary Jo Foley’s skeptical interpretation of the news. She thinks that Microsoft will announce a new version of Windows Embedded Compact, a trimmed-down version of Windows CE made especially for enterprise devices. That OS, which is currently in beta, already runs on ARM, and might make a suitable platform for Windows-powered tablets, especially the kind attached to your UPS driver’s barcode scanner.

Among other points, Foley notes that the timing is right, and that Microsoft announced tablet partners earlier this year who are already in the business of making Windows Embedded Compact devices.

That outcome would make a lot more sense to me, and if Foley’s right, Microsoft’s “tablet” news won’t be as exciting for the average gadget geek aching for a Microsoft-powered iPad competitor (unless you have a urinary tract disorder).