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The Redmond, Wash.-based company said its new platform will be a "clean break" from previous versions of the software, a necessary step to make it as user-friendly for touch screens -- instead of styluses -- as possible, but now leaves tens of thousands of apps behind that go back more than a decade.

Many companies now face the problem of developing software for Windows Mobile 6.5, which will soon become obsolete, or writing code for Windows Phone 7, which doesn't begin shipping until later this year.

Microsoft has been trying to climb its way back after losing market share to Apple's iPhone and Research in Motion's BlackBerry devices. While its core business users have remained firmly rooted, rivals have broadened their appeal to younger buyers -- a segment it hopes to recapture with the revamped platform.

"We're really trying to go after the life market," said Steve Ballmer, Microsoft's chief executive. "People work, they live, and I think on their phone they don't make a big distinction, so we need to support all aspects of somebody's life."

The new operating system has a completely new "dynamic screen" that features six "hubs" -- displays that combine similar services. So for example, users will be able to view a "people" hub for emails, text messages and updates from social networks, or launch a "games" hub to connect to an Xbox Live account and play online.

Microsoft said the first smartphones to run Windows Mobile 7 will be in stores by Christmas. Its partners include carrier AT&T and handset makers HTC, LG, Samsung and Sony Ericsson.