Should Apple feel a little intimidated about this? We just have to wait for early fall (whatever that means) to find out if Windows Phone 7 update will be as great as it claims to be. With more than 500 new features and Internet Explorer 9 ready to be used to read HTML5 and CSS3 full power. It definitely sounds like it!

For developers attending its annual Web development and design conference, there was more than PSD to CSS to talk about. Microsoft demonstrated the first major update pending for its Windows Phone 7 mobile operating system, Windows Mango, along with new developer tools for it. Some of those that have been revealed are:

Bing- As a search engine that finds and organizes the answers you need so you can make faster and better informed decisions. Just as if you were talking to very specialized person. A new component, Local Scout, shows you stuff to “see + do” around, like shopping and food, with recommended listings and reviews, pulled from Bing’s database.

Groups and messaging- It’ll let you filter all the social networking stuff for a particular group of people, so you can focus on the people you actually care about. And it’s got integrated group chat, through Facebook chat or Windows Live Messenger.

Voice demo- When you receive a text message while listening to music, the phone reads out the message, and you are able to simply speak the reply, which the phone translated to text to be sent away.

Application multitasking- It is for background processing, audio and file transfer, and fast application switching.

Deeper phone integration- Apps can take better advantage of the versatility of Live Tiles.

It sure promises lots of great new stuff so far. Fall has a whole new meaning other than cookies and leaves; it is awesome communication in the form of a new forbidden fruit.