Microsoft have revealed a new software update for their phones that will allow users the chance to be able access 500 new features, including Internet Explorer 9.

The new software has been given the code name of Mango by Microsoft and new phones available with the software are to be made by Nokia and are set to be available from later this year,

The move is hoped by Microsoft to increase their current 4% market share of smartphone sales, a market which is currently dominated by Apple and Google.

President of Microsoft mobile communications, Andy Lees said: “Seen months ago we started our mission to make smartphones smarter and easier for people to do more.

“With Mango, Windows Phone take a major step forward in redefining how people communicate and use apps and the internet.”

The Mango software will see Microsoft smartphones having access to an integrated SMS facility as well as Facebook chat and Windows Live Messenger.

There will also be the opportunity for the smartphone users to access a single inbox for all their email accounts and more integration between the phones and other social media sources including Linkedin and Twitter.

The new updates will be available for free for current owners of all Windows Phone 7's in the autumn.

While the new updates can only be good news for Windows phone owners industry insiders are skeptical that this will be enough of an incentive for phone users to switch from either Apple or Google phones while Microsoft are facing an uphill struggle to be able to catch up with the market leaders.

According to Gartner, an analyst firm, the Google Android system is the number one choice in the world with a 36% global share of the market followed by Apple with 17%. However Gartner predicts that the collaboration between Nokia and Microsoft may be enough to push both companies forward to a possible market share of 19.5% by 2015.