Nokia, Microsoft to Sell 37 Million Windows Phones

Shipments of Nokia's Windows Phones will hit 37 million units this year, according to Morgan Stanley's estimates, before ballooning to 64 million in 2013. In addition, analysts expect HTC to ship more Windows Phone devices this year, putting the total number of devices shipped in 2012 over 40 million.

"We've got a lot of room to go in selling Windows Phones", said Microsoft CEO Steve Ballmer at the Consumer Electronics Show. "But I feel very much like the work we're doing is really going to pay off".

Microsoft made improvements to its Windows Phone platform last year with the launch of the Mango update, and devices from Samsung and HTC hitting AT&T in the U.S.

The company's partnership with Nokia is now in full swing, with devices already out in Europe and about to hit the U.S, favorable reviews of the products, and growing developer support for the platform's mobile app store.

Google's Android and Apple's iOS sit atop the smartphone market in the states, but Microsoft is poised to build momentum and step up its $100 million marketing campaign.

However, in order for the company to hit the numbers analysts predict, its devices will have to begin selling quickly. Microsoft will have to sell nearly 10 million Windows Phones a quarter, eclipsing past performances by a wide margin. If Microsoft hits these targets, the company's smartphone platform will claim a 10 percent market share by the end of the year.

However, despite all the company has done to put the operating system in favorable position, it may find it difficult to reach analyst's lofty expectations, with a new iPhone set to come out this year, along with a slate of impressive Android devices.

Windows Phone may be poised to have its best year yet in 2012, but even if the platform posts strong numbers, it may still fall short of expectations in light of strong competition.