Smartphones are the phones of the future...or, at least, this holiday season. Google, Microsoft, and Palm are making moves to challenge Apple's iPhone. On Tuesday, Google announced that it is teaming with Verizon Wireless to co-develop phones based on its Android operating system, while Microsoft unveiled Windows Mobile 6.5, a new version of its smartphone software. Smartphones running Microsoft software account for 11 percent of the worldwide market for the first half of 2009, while Apple accounts for 11.7 percent, Blackberry for 19.9 percent, and Nokia for 46.4 percent. Even though Apple takes up a modest market share, experts say the iPhone is the one to beat due to its multi-touch screen innovation, and the wide variety of applications available for it.