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The story first surfaced on Cnet, which claims that despite Microsoft's done-when-it's-done attitude, partners had expected to have the latest version of the mobile operating system in their hands by early next year.

The delay will see Microsoft lose further ground on its competitors, with Apple's iPhone selling well and Google gearing up for the launch of the first Android-based smartphone today.

While

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Microsoft has confirmed Steve Ballmer and mobile unit chief Andy Lees met with 17 mobile partners, the company has remained tight-lipped about the contents of the meeting.

Microsoft has revealed little about Windows Mobile 7, though leaked documents have suggested that the operating system will feature advance touch and gesture capabilities based around the phone's camera, rather than gyroscopes.

Microsoft's Tellme division is also thought to be building for the operating system, hinting at some fairly advanced speech input commands.

When asked to comment Microsoft responded: "Innovation with Windows Mobile is not tied to a release. Our strategy makes every phone using Windows Mobile unique. Every one of the 20+ new devices coming this Autumn features new innovations. The roadmap isn't all about major OS versions, there will be continued advancements - whether through new features like IE6 for mobile later this year, new services, or partner innovation on top of the platform."