Balmer says that he sees Windows and Windows Mobile as two parts of a single project that will enjoy the benefits of shared features like browser technology, presentation, and even the operating system's kernel.

Balmer said that he hopes that Windows Mobile can increase market share as it is transitioned from the smartphone segment to the entire phone segment, as the operating system is well-suited for low cost smartphones.

Balmer also dispelled rumors that the company would release a Microsoft-branded smartphone to compete with companies like RIM and Apple. He says Microsoft will stay committed to its licensing model.