We already know that an update is coming to Windows Phone 7. In fact, there's a pretty robust rumor floating around that suggests there will actually be two updates coming in the first part of 2011, suggested to be January in February. Those updates are supposed to be small, with the first one focusing on bringing more elements to Windows Phone 7, like Copy & Paste, while the second one in February may focus more on the developers out there. But, according to a source speaking with ZDNet's Mary Jo Foley, a huge update is coming to Windows Phone 7 in the later part of 2011.
This "huge" update will be significantly bigger than the updates in January and February. This update, which may even be called Windows Phone 7.5, is said to be bringing Silverlight support, along with HTML 5 support, to the browser. There's also talk that the update will include support for Far Eastern languages. There will also be other features and functionality thrown in there for good measure, which some may focus on the enterprise market out there, but details are scarce at this point.
With Windows Phone 7.5, or Mango, rumored to launch at the end of 2011, it's also being suggested that Windows Phone 8, or Apollo, will make it to handsets by the end of 2012. Granted, none of this is being confirmed by anyone at Microsoft, but it would make sense for Microsoft to be aggressive with their updates to the handsets.