Microsoft doesn't have a business model problem in the mobile market, but its phones are skewed toward business users at the expense of consumers and are not as modern as they need to be, Robbie Bach (pictured), president of Microsoft's entertainment and devices division, told financial analysts Thursday at the Consumer Electronics Show.

Those realities will present Microsoft with some specific challenges in the mobile area, he said, where Apple and Google are setting a new pace. But in established Microsoft fashion, Bach is unbowed and optimistic despite the company's weak mobile showing to date.

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