Steve Ballmer admits Windows Phone disappointment.

WorldWide Tech & Science. Francisco De Jesús.

Steve Ballmer, CEO of Microsoft, this week acknowledged that with regard to its Windows Phone device line, “we haven’t sold quite as many probably as I would have hoped we would have sold in the first year.”

Speaking at an analyst event this week, Ballmer  said that “I’m not saying that I love where we are, but I’m very optimistic to where I think we can be.  I think with a little bit more effort, a little bit more energy, the level of enthusiasm from the customer base is high enough we've just got to kick this thing to the next level.”

Ballmer highlighted some of the developments which will aid Windows Phone in the future, unsurprisingly making much of the computing giant’s relationship with Nokia. “They're working with us in exactly the way we described, to try to get into new markets, find new price points, take a look at new hardware design.  They're all in on Windows.”

However, he also noted “Google buying Motorola” as an event which has changed the dynamics in the mobile device industry. This deal will see Google acting as both a supplier to vendors through its Android activities, and a competitor through its Motorola business – sparking concerns of a potential conflict of interest.

While Windows Phone has struggled to gain traction in the market, it has been used in devices by vendors including HTC, LG Electronics and Samsung – all of which are also Android licensees, and may be concerned by Google’s shifting position. However, Nokia also now has a deep relationship with Microsoft which could see it becoming dominant in the Windows Phone ecosystem.

With the first devices using the second version of Windows Phone (Mango) set to reach the market imminently, Ballmer acknowledged that “there's just more work for us to do as we move forward to establish Windows Phone in the market.”