New Microsoft (MSFT) Windows Phone App Taunts Nokia (NOK)

Adding figurative (or maybe real, in this case) salt to the Windows Phone wound, Microsoft (Nasdaq: MSFT) is giving Windows Phone 7 (WP7) users a sneak preview of the Windows Phone 8 (WP8) screen. We know at least one company not laughing: Nokia (NYSE: NOK).

In the Windows Phone app store today, one independent app developer, which insists they are not part of Microsoft, is letting WP7 users download an app which simulates the home screen of the upcoming WP8 operating system.
Features of the app include:

• Resize tiles
  
• Install new app by tapping on the marketplace tile
  
• Change theme color through the settings tile

The irony is that WP7 will not be upgradeable to WP8, as mentioned with the unveiling in June.

As mentioned, Nokia has been under pressure as of late tied to uncertainty surrounding the release of WP8. With WP7 devices all but null right now, it would take a special offer to get consumers motivated to switch before the next-generation devices are released.

In addition, Nokia and Microsoft would be immediately losing ground to Apple (Nasdaq: AAPL), which should debut a new iPhone in late-September or early-October and make the device available for immediate shipment. Even if Apple decides to wait a week, Microsoft planned Windows 8 release date of October 26th gives Apple a little cushion.

Shares of Nokia are off 8 percent while Microsoft is down 1.7 percent Friday.

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