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The biggest challenge is shaking the "Microsoft OS on a phone is bad" mindset created by Windows Mobile 6.
But they should stay away from trying to make smart phones - they will continue to get their fingers burnt. They cannot compete with Apple and Android in the smart phone sector
You can always try GSMArena.where can I get a good Android / iOS / WM7 comparison?
I am a huge Android fanboi but I wish Nokia/Microsoft well. There needs to be more competition to keep Google/Apple on their toes. And frankly when has more choice been a bad thing.