Microsoft CEO Steve Ballmer has revealed that a second generation Windows Phone 7 smartphone will be available during the holidays later this year.

Microsoft’s top dog, at Microsoft’s Imagine Cup 2011 which attempts to find the best and the brightest teen techies, made the announcement about the upcoming smartphone.

You know, a year ago we didn't have a phone in the market. Now, we're charging forward with Nokia. We have the second generation of our phones coming out this Christmas, and people are starting to do things they had never imagined before,” Ballmer said. I love the applications that I saw for the Windows Phone from the people in this room, and the way you're pushing that device, and using that device. It was really exciting for me.

Others present at the event were Jon Perera, General Manager, Academic Programs, Microsoft, Aurther Vanderveen, CEO, Office of Innovation, New York City Department of Education and Jeffrey D. Sachs, Director, The Earth Institute, Quetelet Professor of Sustainable Development, according to a Microsoft News Center report.

The Windows Phone 7 powered smartphones are built with features such as Xbox Live integration, online banking options and MS Office. The Mango update will make the smartphones significantly faster and filled with richer browsing experience. Windows Live, Facebook and LinkedIn have already been added.