I guess their expectations were more hopes, but I'm sure AT&T and microsoft knew there was a possibility that they wouldn't do iOS numbers on release. If you think about it, Verizon isn't going to push Windows because they are in love with Android. AT&T is mad at Apple and Apple mad at AT&T... my boy was told no one could order iPhone devices in his store for company devices and that the choice was pretty much windows, blackberry (torch) or the Inspire.
I do see the platform taking off, but I see it taking away from Windows Mobile's market share first, then WebOS before Android and iOS.
M$ (yup, haven't used this in a while... lol) has the advantage IMO. When people get Windows 8 on their machines, they'll be accustomed to the Metro UI and will eventually lead to more sales. I remember when I bought the original iPhone (release day) and after that day, I was dying to get a macbook pro and mac pro. It even lead to my boy getting a mac mini, then eventually a macbook pro. M$ (again... muahaha) is probably gonna go about getting more share the opposite way... more people have their OS and love windows 7 now (me being one) and after using 8, they'll be curious about the Metro UI on their mobile devices.
I prefer my windows phone over my atrix, inspire, aria, i4, torch, pre and probably some other phones I'm missing and that's without Mango. I'm into phones hardcore and I'm not biased to one brand, "just because". I have to enjoy it. Android... great phones and super hardware, but lags and gets slow like a lazy fat dog on a super hot summer day. iOS is cool, but the notifications suck @$$. It's annoying and even if that's what iOS5 will be focused on, for it to have taken 5 different OS implementations to do this, it left a real bad taste in my mouth.
Does anyone remember how Android started off? They didn't start selling well until the original Droid from Motorola on Verizon. Their app market was disgusting. And they went from BlackBerry look alike (the preview of their OS) to iOS's ugly twin on release day with widgets and a better notification system. A lot of people who got Android devices were looking for an iPhone, but didn't want to go on to AT&T or couldn't go to AT&T. This was the main reason Android was so successful, not to mention every service they had were free!!!!!!!!!