Wish we could see these numbers ourselves, but tracking down Morgan Stanley reports without access is a bit tricky. But to quote from Business Insider, whom we think we can trust on such an issue, the global financial service predicted in a report this morning that Microsoft could sell upwards of 4 million devices with Windows Phone 7 and another 1.5 million of Windows Mobile 6.5.x.

Is that good? Is that bad? Hard to say really as Microsoft is launching their new OS "globally", so in theory they could push a lot more. On the other hand, due to supply constraints and "growing" the v1.0 OS, things might take awhile to take off (Android had a nice 9 month incubation phase too). By way of comparison, Apple is pushing nearly double that of the iPhone every quarter right now. However, Apple didn't sell that many iPhones till their sixth quarter--so we kind of like those numbers, we think.

In related news, they predict that since the smartphone market is still growing, Microsoft (and to a lesser extent, HP Palm) still have time to make a dent in the increasingly crowded smartphone business. But eventually, the market will hit a wall and the herd will have to be culled (cough, HP Palm, cough).

Source: Business Insider, Morgan Stanley