LAS VEGAS -(Dow Jones)- Microsoft Corp. (MSFT) needs to innovate, said Robert Bach, head of the company's entertainment and devices business.

The company has mostly worked on smartphones dealing with enterprise workers, but wants to provide more of a personal touch.

"People want a device when they're at work, or at leisure, Bach said during a keynote speech at the CTIA Wireless trade show.

Microsoft earlier unveiled a new version of its Window Mobile operating system, which has a few tweaks that make it more user-friendly.

"It's an important release for us," Bach said. "It's designed to make the phone simpler and easier to use for voice, data, communications and entertainment.

Microsoft also unveiled Mobile Device Manager, which allows IT workers to manage smartphones on the company's network.

Bach also said the Sony Ericsson XPeria X1, which is the handset maker's first endeavor into the smartphone world. It was one of the hottest devices at World Mobile Congress in February.

-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com

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  04-01-08 1357ET
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