Motorola Inc. will introduce a mobile phone running Microsoft Corp.’s Smartphone operating system this month, and European operator Orange will sell the device, according to a report in the Financial Times.
Motorola declined to comment on the report, citing company policy not to discuss industry rumors and speculation. Orange also had no comment on the report. Microsoft was not immediately available for comment.
The report comes after almost a year of rumors of such a move. Indeed, the speculation increased recently after Motorola, the world’s No. 2 mobile-phone maker, announced it would drop its stake in operating system company Symbian-widely viewed as Microsoft’s main competitor. Adding further complications to the mix, Motorola has announced wide-ranging support for a Linux/Java operating system, which could help the company in the hot Chinese market.
Microsoft for years has been working to get into the mobile-phone operating system business and has enlisted several Asian manufacturers in its efforts. Orange became the first carrier in the world late last year to sell a mobile phone using Microsoft’s Smartphone operating system, and others have followed suit. Several carriers in the United States plan to offer a Microsoft Smartphone device in the coming months.
Much of the established wireless handset industry has rallied against Microsoft, fearing that its software will commoditize the phone market as it has the personal computer market. With Nokia Corp. leading the charge, Symbian has come to represent the industry’s alternative to Microsoft.
With slipping phones sales and market share, some have said Motorola could benefit by teaming with Microsoft for a wireless device as a way to target high-end business customers. Those in the industry also question whether Symbian might suffer from a Microsoft/Motorola teaming.
Interestingly, Motorola wouldn’t be the first major mobile phone maker to team with Microsoft. The world’s No. 3 mobile-phone maker, Samsung Electronics Co. Ltd., plans to soon introduce a mobile phone using Microsoft’s Smartphone operating system.
Microsoft’s Smartphone platform is a skimmed down version of the company’s Windows operating system. Smartphone is designed for one-handed use, as a mobile phone. Microsoft’s Pocket PC operating system is a slightly different platform, although it shares many of the same features, and is designed for use in personal digital assistants. Both operating systems fall under Microsoft’s new Windows Mobile brand.
