AT&T Wireless Services Inc. plans to sell a Motorola Inc.-manufactured smart phone that incorporates Microsoft Corp. technology.
Motorola said it will launch a Microsoft Smartphone-powered handset next month, and that the two companies will collaborate on a series of smart phones and Pocket PC wireless devices as well as cooperate on joint marketing and wireless developer programs.
The Motorola MPx200 is the first device from the partnership and is scheduled to launch next month by Orange U.K., which also launched the SPV Microsoft Smartphone-powered device late last year. The MPx200 will be available through AT&T Wireless in the United States and by distributors throughout Europe and Hong Kong by the end of the year.
The MPx200, which Motorola said measures 3.5 inches in length and less than 2 inches wide, includes a number of Microsoft applications, including a Windows Media Player, Pocket Internet Explorer, MSN Messenger instant messaging and the ability to synchronize with Windows desktop programs using the company’s ActiveSync application. In addition, the MPx200 includes 32 megabytes of ROM and 32 megabytes of RAM as well as a secure digital multimedia memory slot, a mini USB connection and an infrared port.
Two versions of the phone will be available, with North American models compatible with 1800 MHz GSM networks, and a world version that adds 900 MHz GSM capabilities.
The device is expected to provide a boost for Microsoft and Motorola, which have both struggled to gain, and in Motorola’s case keep, market share in their respective segments.
Microsoft’s Smartphone platform, which was announced last year, has found limited acceptance from manufacturers and stiff competition from alternative platforms including U.K. software developer Symbian plc. Microsoft scored its first major win late last year when Orange began selling the SPV device in Europe, which was quickly followed by a setback when Sendo Holdings plc abruptly scuttled its planned Smartphone-powered device in favor of the Symbian platform.
The U.S. market has proven more difficult as carriers passed on a Smartphone-powered device, though many carry Microsoft-powered personal digital assistants.
“We have learned a lot in the last year,” said Derek Brown, director of Windows Mobile devices at Microsoft.
Microsoft’s Smartphone platform received a boost last month when Chinese mobile-phone manufacturer Dopod said it would begin selling a Microsoft-powered device. A handful of other manufacturers, including Taiwanese manufacturer Chi Mei and Samsung Electronics Co. Ltd., are expected to launch Microsoft Smartphone-powered handsets in the United States. Samsung is expected to introduce its i600 CDMA smart phone before the end of this year.
The MPx200 is also important for Motorola, which recently exited the Symbian alliance just after it released its only Symbian-powered smart phone for European operator 3. The company explained the departure by claiming it wanted to shift its focus to the Linux/Java platform, which it expects to include in a majority of its devices in the future.
“We believe Java is what ultimately provides our customers worldwide with the most optimized and differentiated mobile experience,” said Scott Durchslag, vice president of Motorola’s Personal Communications Sector.
Motorola also has seen its handset market share dwindle in the face of stiff competition from segment leader Nokia Corp., which increased its ownership in the Symbian alliance following Motorola’s departure, and from Samsung.
Analysts have roasted Motorola for its lack of direction in the smart-phone space, which in Motorola’s favor has yet to prove itself a valuable market .
A recent report by research firm IDC found that while sales of smart phones increased to nearly 2 million units during the second quarter of this year, smart-phone sales represented 1.7 percent of total handsets sold during the quarter. Jupiter Research also reported that a consumer survey found most U.S. customers would not buy a smart phone even if it were priced at less than $50.
While pricing for the MPx200 was not released, AT&T Wireless said the device will be priced closer to a high-end handset than a PDA and should come in cheaper than the Microsoft Pocket PC-powered Siemens SX56 device the carrier offers for $550 before rebates.
AT&T Wireless said the MPx200 will serve an important role in its ever-increasing handset portfolio.
“This is an invaluable device for our portfolio,” said AT&T Wireless spokesman Jeremy Pemble, who added the device would be targeted at both the “prosumer” mobile professional market and enterprise customers.
“The flip-phone form factor is very important for those users who want the functionality of Microsoft’s operating system but don’t want to carry around a PDA,” Pemble explained.
The device will also have one-click access to AT&T Wireless’ mMode service and be able to use the carrier’s over-the-air provisioning solution, which is designed to simplify implementation efforts of corporate information technology departments.
