If true, this is a disappointing development in the world of Windows Mobile. According to a blog at CNet, Microsoft is quietly telling some of its partners not to expect the final version of Windows Mobile 7 until the second half of 2009. 

This schedule isn’t exactly a delay, as Microsoft has never provided a firm date for delivery of WinMo7, but many analysts expected the new OS to ship in early 2009.

Windows Mobile 7 is expected to be a major update to Microsoft’s mobile OS, with gesture recognition, more touch-friendly interaction, and sweeping improvements to the the UI.  These changes are very much needed in light of increasing competition from RIM, Apple and Google’s Android.