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Photo gives Motorola/Microsoft collaboration more credibility

Pictures of a possible Motorola Inc. smart phone using Microsoft Corp.’s operating system surfaced on an enthusiast Web site, further stoking industry rumors that Motorola has sided with the software giant.

The photos, posted on smart-phone enthusiast Web site www.modaco.com, coincided with a rash of news reports claiming Motorola has plans to build a device using Microsoft’s Smartphone operating system. A Microsoft executive declined to comment, while Motorola officials said the company does not comment on industry rumors and speculation.

Such rumors have been ongoing since a Motorola executive publicly endorsed Microsoft’s operating system at the 3GSM World Congress earlier this year. In an interview with RCR Wireless News shortly thereafter, Mike Bordelon, Motorola’s software vice president, seemed to further the idea by refusing to comment on a possible Motorola/Microsoft teaming while remaining outspoken on all other potential operating systems. Motorola recently introduced a device using the Symbian operating system and has announced wide-ranging support for a Linux/Java platform.

Industry analysts have said that a Motorola device using Microsoft software likely would bolster Motorola’s high-end device portfolio and help it in the enterprise market.

Motorola would not be the first major handset provider to team with Microsoft. Samsung Electronics Co. Ltd. earlier this year introduced its SCH-i600, a CDMA flip phone using Microsoft’s Smartphone operating system. Microsoft executives said the phone will be available in the United States before the end of the year.

However, such advanced phones may see relatively little success. A new consumer study found U.S. wireless users show little to no interest in advanced smart phones, and handset makers and carriers would be better off selling specialized wireless devices.

According to a new study from Jupiter Research, most U.S. consumers would not buy a smart phone even it was priced under $50. The firm found users interested in voice and text-messaging phones, and to a lesser extent phones with Java and BREW capabilities. The survey found little interest in phones that include built-in personal digital assistants, digital cameras or MP3 players.

Because interest in converged devices is low, Jupiter Research advised that carriers and handset vendors should create single-purpose cell phones, PDAs and MP3 players and allow them to function as single units using Bluetooth wireless technology.

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