Analysts Believe Microsoft’s (MSFT) New OS Isn’t Seeing the Anticipated Demand

While comments from Nokia’s management team indicate solid sales for its new Windows 7-based handsets, analysts are beginning to think otherwise, AllThingsD reported Tuesday.

Pacific Crest's James Faucette, previously forecasting the sale of 2 million Windows 7 phones within the first six months, is now anticipating total sales of less than 500,000 units.

Microsoft (Nasdaq: MSFT) was really looking for sales of these phones to take off. Nokia phones, with Microsoft’s new operating system, will continue to face stiff competition from the likes of Apple (Nasdaq: AAPL) with its new operating system, as well as Samsung and Motorola, which use Google’s (Nasdaq: GOOG) Android system. Google’s Android system is leading the globe in market share as the company allows phone makers to use the operating system free of charge.

Some believe Microsoft -- not exactly considered an innovator over the past couple of decades -- is going to need to develop something miraculous with its new operating system to steal market share from the iOS5 and Android.

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