According to the numbers coming from different places – Windows Phone 7 sales are very disappointing (~50,000 in the first couple of weeks, not much more than that later on, 3% of smartphones sales in the UK and other horrors… ).
On the other hand, apps number raised significantly and getting close to 3,000 apps in the marketplace.
Not too bad at all, but can it be that there are now more developers using Windows Phone 7 than actual consumers???
(according to Microsoft, there are already 15,000 developers using WP7)
Personally, I don't think WinPho7 would be a complete failure.
I believe in the product. I think the OS is good enough for version 1, all the rest will surely come very quickly.
In addition, the world is tired from Android – today's only alternative to the 4 years old iPhone which is also not getting younger if you know what I mean.
Bottom line, the world needs a 3rd player, the world needs something to bridge the gap between iPhone's closed environment and Android's way too open / messy environment. That's where Microsoft can get into the picture.
The only obstacles are marketing, users perceptions (they all see windows phone and remember windows mobile), and price of devices (which is currently way too expensive).
I guess we shall wait and see if Microsoft manages to perform a turnaround and build some positive momentum around it real soon…