Presently, the smartphone market is primarily dominated by iPhone and Android. The only mobile operating systems actively being developed are these two, including Android forks that run versions of Android without Google. Even after abandoning its Windows Mobile and Windows Phone platforms years ago, Microsoft created Android phones. Today, its software permeates our mobile experiences, if we choose to allow it. Furthermore, with features that enable connection and management of your phone, Windows 11 has addressed their ecosystem gap.

However, the rise of ChatGPT presents a compelling reason for Microsoft to entertain the thought of reintroducing its own Windows-based smartphones. Microsoft discontinued its $7.6 billion investment in Nokia in 2014, simultaneously shutting down its Windows Phone platform, all under current CEO Satya Nadella. Upon a recent reflection, Nadella confessed to some regret about the Microsoft’s departure from the mobile phone sector under his supervision.

According to Nadella, he believes looking back, there could have been different strategies implemented that may have allowed the initiative to succeed, potentially involving the reinvention of the computing category comprising PCs, tablets, and phones. His reflection coincides with the ongoing evolution we’re currently witnessing: the advent of personal AI represented by programs like ChatGPT, which is expected to be integrated into all future smartphones and other devices.

Google, for instance, is well-place in terms of its transition to personal AI experiences. It manufactures its own hardware and software, hosts a wealth of essential mobile apps, and has Google Bard in its repertoire. Apple, similarly, is heavily investing in bringing personal AI programs to their platforms, starting as soon as next year. Additionally, Samsung is also reportedly planning to launch a personal AI assistant in the coming year.

In the pre-personal AI era, Microsoft’s absence in the smartphone sector didn’t pose as an issue. Windows remained the dominant traditional computer operating system, and Windows 11 marked a significant leap from its predecessors. Microsoft's powerful suite of productivity apps were optimized to be effective on any device, potentially negating the need for Microsoft to develop its own phones solely for their presence on home screens of iPhones and Android devices.

However, upon the arrival of ChatGPT, Microsoft began to grapple with a new problem. While Microsoft AI might be available on iPhone and Android, it does not integrate with these devices as seamlessly as Copilot on Windows 11. Therefore, the company should consider re-establishing its presence in the mobile business, a sentiment echoed by their third CEO, Nadella, who has expressed regret over the company's performance in the mobile sector unlike his predecessors, Bill Gates and Steve Ballmer.

It's not beyond reason that Microsoft could pull off a successful reentry into the mobile market. The company has the design talent and capital - having notably spent nearly $69 billion on acquisitions. Perhaps a fresh approach would be the introduction of devices powered by mobile versions of Windows 11 instead of Android, allowing Microsoft to extend its personal AI features like Copilot to mobile experiences.