How Will Apple Respond To Windows Phone 7?

Apple has been grumbling about enforcing its multi-touch patents for over a year, and earlier this month sued HTC in what looks like a bid to slow the momentum of Android. The lawsuit has chummed the waters with uncertainty and has reportedly caused handset OEMs to reconsider their Android plans.

Some Apple resellers believe it's just a matter of time before Apple trains its legal crosshairs on Microsoft. "With the action against HTC, Apple is basically testing the waters," said Michael Oh, president of Boston-based Apple reseller Tech Superpowers. "They're trying to navigate and figure out the best way to pursue their aggressive stance."

"If there's anything in Windows Phone 7 that infringes, Apple will definitely go after it," said David Doyle, vice president of Simply Computing, a Vancouver-based Apple partner.

But while Android poses the biggest threat to the iPhone today, Windows Phone 7 devices won't arrive until late this year, so any legal wrangling between Apple and Microsoft on this issue won't happen until 2011 at the earliest. Microsoft's vast patent portfolio could also be a deterrent, and the company is reportedly planning to help companies that Apple sues for patent infringement.

Meanwhile, Apple also has plenty of time to roll out software and hardware upgrades to the iPhone.

Microsoft this week revealed that Windows Phone 7 devices won't have full multi-tasking or copy/paste support, which have been two of the biggest complaints associated with the iPhone. As Apple did initially, Microsoft is claiming that users won't need these features, but that stance isn't going to help a company that has already lost many of its mobile customers.

Apple eventually caved on copy/paste support and is rumored to be adding multi-tasking with the iPhone 4.0 upgrade that's due this summer. Partners also expect the arrival of the iPad to give the iPhone a boost by broadening the application ecosystem and providing greater incentive for developers.

"Apple is in a great position to upgrade the iPhone before Windows Phone 7 devices reach the market, and I'm sure they're not sitting still," said Oh. "I expect Apple to respond directly by filling the gaps in the iPhone's functionality."

Windows Phone 7 is far superior to Windows Mobile and will put Microsoft back on track, but it's not going to magically close the gap that Microsoft allowed to build up over the past few years. Unless Apple halts iPhone development until Windows Phone 7 devices hit the market, Microsoft will still be playing catch up for the foreseeable future.