Microsoft has been gaining ground with the operating system, but it faces fierce competition. For example, from Apple and Blackberry maker Research In Motion and Palm, Yahoo News reported.

Microsoft also announced a new version of the mobile operating system. The new system, called Windows Mobile 6.1, would allow users to navigate the feature menus on their cell phones more easily.

The company said it expects the license sales of its mobile operating system to outperform smartphone market growth within the next few years, according to Reuters.