Microsoft has admitted that they have failed to meet their sales target for its fiscal year 2008 for their Windows Mobile operating system.

The company managed to sell more than 18 million licenses by the end of June. They had originally expected to sell around 20 million licenses.

Market analysts believe that Apple iPhone 3G could be one of the many reasons for the low sales.

Apple launched their second generation iPhone in July and a lot of potential customers would have delayed their decision to get a Smartphone till the launch leading to fewer sales for Windows Mobile devices.

Analysts also believe that the delay in the launch of Sony Ericsson Xperia Smartphone might have also hurt their sales figure.

Microsoft faces more hurdles in the future with the upcoming launch of mobile devices based on the Google Android platform.

Source:techwhack