Microsoft Shipped 2 Million Units of Windows Phone 7 Software Last Quarter

I'd be interested in knowing their total activations for the quarter though it's certainly lower.

Doesn't compare well with the 300,000 activations/day Google claim to be doing.

- Zune Pass. It's like Netflix for music, but you can carry your queue around with you even if you're off-signal.

- I stayed with AT&T, and have significantly fewer dropped calls and better signal quality than on my last phone.

- A single start screen with all the apps, auto-updating so you can see weather and other info without having to launch the app is really fantastic.

- No iTunes. The phone can just sync over WiFi, and there's no weird tethering-to-one-machine garbage.

- The keyboard! It's got two modifier keys (shift and FN), and the keys are large enough that I can type pretty quickly. I need to port a mini-emacs and a terminal window ASAP. It's that usable.

The not-good:

- The App Market really isn't there. And where there are similar apps, the ports smell of outsourced development, as many of them (Yelp and Kindle, I'm looking at you!) crash and/or just don't have a very smooth feel.

- Location services seems to have a lot of trouble figuring out where I am to anything smaller than a zip code.

- I'm not on Facebook or XBox Live, so I feel like some of the social integration is a bunch of work they did that I just miss out on. Fortunately, I could just remove those apps from the front screen.

- Trying to browse the Metro UI media app is a real pain. If I'm listening to a song, do I use the back button or swipe in a direction? Well, it depends on how I got to the Now Playing screen, and there are a few cases where I've been just stuck and had to close and re-open the app so that navigation would reset and I could get back to a artists list.

W/o Verizon and Sprint they'll continue to struggle. And frankly they should have made sure they were on Verizon before iPhone. A US CDMA launch would have likely been better than a global GSM launch.

And the phone still has many holes in it. It looks like a great foundation, but they need to fix the holes a LOT faster than they've been doing.

Not fixing the holes is frankly inexcusable. And IMO probably the best indication that MS is culturally broken. I get having trouble rev'ing Office or Windows -- those have huge existing user bases (deeply entrenched inthe enterprise) so you have to be extremely careful and move with great deliberation. With phones they have no legacy, no current customers, aren't in the enterprise at all, are playing catch up, and have huge holes. If this isn't a time when you rev hard and fast, I'm not sure when it is. And they have a great model in Chrome of a team that can do it with high quality.

MS not being agile with WP7 would worry me more than threats to Office and Windows, because it indicates an inability to react.

Did they really spend $1B on the Kin? Do you have a breakdown on what they spent that much money on?