Hewlett-Packard confirmed on Friday that they will be using WebOS that they acquired when purchasing Palm, and not Windows Phone 7 for their smartphones.

This is a setback for Microsoft as HP is their biggest customer and to not have HP work on their latest operating system might not fare too well for Microsoft. However, other big companies like Samsung, LG, HTC and Dell have been rumoured to go with Microsoft's Windows 7 for their smartphones.

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