One of the main factors contributing to the success of the iPhone and Android smartphones is their app stores, with hundreds of thousands of applications ready to turn the phone into a device with infinite capabilities.  When Microsoft launched Windows 7 Phone (code name Mango), it has not neglected this factor and has since invested a great deal in its apps, because a strong marketplace could empower Microsoft as a third alternative for developers and consumers alike.  And starting this week, ahead of the much anticipated Mango software updates, Microsoft opens its newly renovated online Windows Phone Marketplace.

In the Marketplace, there are over 30,000 applications that you can now browse and purchase. It’s populated by apps for Mango or Phone for Windows 7.5.  The home page has two main categories: applications and games, a setup similar to the Android Market.  The apps are also divided into categories; entertainment, music and video, tools, lifestyle and so on. All applications come with Facebook and Twitter buttons to share apps across social networks.

Users will also find a unified My Windows Phone page; and the page can be managed through the Xbox Live profile, Live Mail, SkyDrive, and through the settings of My Phone.

Microsoft is said to be investing millions of dollars in its Windows Phone operating system and app store to catch up with competitors. Apple’s App store currently leads the app market with over 4,25,000 apps downloaded, but Android’s dominance in this area is expected to overtake the Apple App Store over the next few years.  Microsoft is prompting Windows Phone as the apps portfolio, featuring rich hardware support and connected and integrated device.

After Google’s acquisition of Motorola Mobility, Android’s supporting mobile manufacturers are looking for alternative software platform to further diversify their efforts, not to mention Microsoft’s spent plenty of time and money on legal bullying to encourage as much manufacturer and developer support for its own mobile OS.  Earlier this week Microsoft landed another big fish for its licensing agreement, working out a deal with Samsung for royalties on all Android devices sold, as well as work and marketing on their upcoming Windows Phone devices.