WP7-installed mobile devices are subjected to automated testing cycles. Photo: Mike Kane/Wired.com

Microsoft’s new Windows phone platform hasn’t gained much momentum in the market, but the company is rapidly revising the operating system in an effort to catch up with rivals.

The company on Wednesday at its MIX developer conference detailed the upcoming software update for Windows Phone 7, dubbed “Mango,” due for release this fall.

The software update will be compatible with all smartphones running Windows Phone 7. Microsoft’s new OS is available on some smartphones from hardware partners including LG, Samsung, HTC and Dell.

Microsoft’s Windows Phone 7 is the software giant’s complete do-over on a mobile OS, after its predecessor, Windows Mobile, took a big hit in market share in the wake of Apple’s iPhone and Android-powered smartphones.

Notably, the Mango update will introduce multitasking for background processing, file transfers and fast app switching, similar to Apple’s iOS multitasking.

Also, third-party apps will be able to take advantage of some of the sensors inside Windows Phone 7-powered hardware, including the camera and motion sensors, for programmers to create augmented-reality applications. Some other core features of Windows Phone 7 include copy and paste and multimedia messaging.

“The next release of Windows Phone represents the evolution of our strategy for ensuring that developers are at the forefront of ‘what’s next’ by investing in even richer customer experiences, a powerful application platform and a thriving ecosystem,” said Joe Belfiore, corporate vice president of Windows Phone, in a statement.

Indubitably, Apple and Google will continue issuing software updates for their mobile operating systems too. But it’s worth noting that copy and paste didn’t appear on Apple’s iPhone until version 3.0, and multitasking and fast-app switching came in version 4.0. Windows Phone 7 has only been on the market since November 2010, and it’s going to be delivering all those features after less than a year.

The nimble pace of Windows phone upgrades shows how seriously Microsoft is investing in the new Windows Phone 7 platform, despite its paltry sales estimates. That intensity may be partly spurred by anticipation of its impending partnership with Nokia.

Microsoft and Nokia recently announced their plans to sell Windows Phone 7-powered Nokia phones together. Given Nokia’s position as the world’s largest cellphone manufacturer, this partnership should provide a significant springboard for Windows Phone 7 to gain presence worldwide.

The first Nokia Windows phones won’t ship until 2012, and at the pace Microsoft is moving with Windows Phone updates, it will be interesting to see how much the mobile space changes once that partnership comes into fruition. Research firm IDC predicts that Windows Phone 7 will be the No. 2 player in the smartphone market by 2015.

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