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A rumor is going around that Microsoft will announce an ARM version of Windows at the Consumer Electronics show that would take place early next month. Microsoft may be inclined to do so because Windows 7 only runs on processors that utilize the x86 architecture. ARM on the other hand has multiple instruction sets with the latest being ARMv7. Not to mention that the ARM processors consume extremely low power.
Microsoft would have to rewrite the entire operating system if it intends to make an ARM version of Windows. Not just that, Microsoft would end up forcing other industry giants to write new drivers for their hardware to work.
Other rumors include the likelyhood that Microsoft will announce a new version of their embedded operating system called Windows Embedded Compact. The new OS has a consumer friendly front end and would be more geared towards tablets.
Intel is trying hard to push its processors into mobile phones. None of the smartphone manufacturers are interested in supporting or making a x86 platform based smartphone.
More as we know it, see you at CES 2011!