Just a week after Windows Mobile 6.5 was announced at Mobile World Congress, Microsoft CEO Steve Ballmer told analysts during a conference call that Windows Mobile 7 should be released in 2010. Ballmer also confirmed that Microsoft will not be making a Microsoft Phone.

WMPoweruser wrote:

According to Ballmer, Microsoft has been ramping up expenditure in the Windows Mobile segment over the last few years, and at $900 million per year, Windows Mobile is close to 4% of Microsoft’s operating expenditure and has 2000 employees (RIM has 2900).  This still however leaves Windows Mobile as a “somewhat unprofitable” Microsoft business, and with Windows Mobile currently 3rd place in market share behind Symbian and RIM.

Balmer revealed that the growing popularity of smartphones should help Windows Mobile to continue growing despite the economic downturn. He also said that Windows Mobile is also well suited for low cost phone segments.

You can listen to the whole webcast at Microsoft here.

[via WMPoweruser]