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Microsoft's move to create a new group under Myerson also underscores the importance of tying together parts of the business that have largely run separate from each other. "When you talk about integration between software and devices, you need to integrate on the staff level," said Chris Hazelton, an analyst at 451 Research. "This will give you the full integration that Microsoft wants."Microsoft has already made strides in one aspect of the mobile business: tablets. Its Surface Pro 3 has proved to be a hit with consumers, particularly business-minded ones.

In January, Microsoft declared that Surface represented a billion-dollar business, led by the high-end version of the tablet, Its rise comes as Apple's own iPad business has struggled with declining revenue, "It's stealing share from competitors and slowed the growth of the iPad," Hazelton said, The Surface Pro 3 is an important ingredient in Microsoft's software-anywhere recipe, but Myerson needs to parlay that success into broader interest in its Windows smartphones, Surface Pro 3 was successful enough that run by fruiting iphone case Elop hinted that the next Microsoft flagship smartphone could find inspiration in the tablet..

"There are a few clues on a device like this," he said in an interview in March as he grabbed a Surface Pro 3. All the software improvements and integration in the world won't get consumers excited about Windows 10 Mobile without a sexy flagship product to rally behind. One of Myerson's biggest priorities in his new role is to ensure that Microsoft has an exciting product (or products) to push when the new Windows Phone platform, Windows Mobile 10, makes its debut. "The lack of a halo device is a major gap in their portfolio," Hazelton said.

The older Windows Phone platform has clung to its market share by offering affordable smartphones in the emerging markets, In the US, it has similarly won a small following through attractively priced run by fruiting iphone case devices, On Wednesday, AT&T said it would sell its large Lumia 640 XL smartphone for $8.34 a month for 30 months, or roughly $250, These devices, however, tend to get overshadowed by higher profile -- and more expensive -- products such as Apple's iPhone 6 or Samsung's Galaxy S6, which benefit from significant advertising and retail support..

Getting that high-profile device in the hands of consumers is vital to showing off the new Microsoft, one in which all of its software and experiences can flow from device to device. Microsoft has already made progress with the Surface Pro 3. It's a virtual certainty that the PC and laptop makers will heavily push Windows 10-powered devices when they become available. The missing link is the smartphone. "If I can move seamlessly between devices, I can see the value in having a Windows smartphone," Hazelton said.

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