If you are trying to login to your Hotmail Account using a Mobile Device and it says that Hotmail Password does not work, then there could be a Password authentication problem.
Now what could be the reasons for a Hotmail Account not to be working on a Mobile Device?
If we don’t have authentication problem with the Hotmail Account, then there could be two Problems because of which your Hotmail Mail Account is not working on the Mobile Device, they are:
1) Problem with the Mobile Device : If you are using the Mobile device browser to login to your Hotmail Mail Account then Before login try to reset the Mobile device browser. After reset you have to type in the Hotmail ID and Hotmail Password because once reset of a mobile device is done, all the saved passwords will be gone from the browser along with the cookies. And if you are using a Mail Application like iOS Mail Application or Android Mail Application then you have to use the App Password, the normal Hotmail Account password will not work on the Mobile Device, you have to generate the App Password from you Hotmail Account.
2) General Password Problem : If you have recently changed the Hotmail Mail Password then you have to enter the New password to login to your Hotmail Mail Account. Make sure the CAPs lock in OFF while typing the Hotmail Mail Password as the Hotmail Password is case sensitive. Now the two step verification is enabled on the Hotmail Account, the also you would not be able to login to your Hotmail Mail Account. Because it needs the authentication code to enter the Hotmail Account, till the time you will not enter the Code it wont let you login to your Hotmail Account.