So my personal experience with a Windows Phone at CES wasn't just a fluke -- they really ARE fast!
This campaign is great, and just what MS needs to do to build up excitement and build up the "cool" factor for Windows Phone.
They still, however, need to find ways to get the apps developers on board and address that shortcoming.
As far as I understand, two primary cost drivers of a smartphone are processor and screen size. As you compare phones, the biggest the screen, the higher the price. Typically, new model will come out with a high price tag. I believe comparing phone shall go with price performance with some factors being locked, for example, same or very close screen size. Otherwise, we are comparing Apple to Orange.
The new Microsoft Mobile launched way after the success of Apple iPhone 3G and of Nexus One. Between Apple iPhone and Nexus One, Apple iPhone doesn't really get very popular until iPhone 3G which was launched in mid 2008, a year after the launching of iPhone. Nexus One used the best components available in the market, serving as a reference design to hardware vendors. Nexus One was launched in 2010, more than a year of initial release of Android OS.
Although Microsoft launched Microsoft CE 16 years ago, they haven't been able to get a considerable chunk of market share. Now, with the revamping of Windows Mobile, expectation from MS would be high. Given Nokia Lumia 710 has just been released. According to market wisdom, we will know whether the new OS will own some good piece of the market.