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Motorola to release Microsoft-based phone this year

Motorola plans to launch a handset based on Microsoft software later this year, according to various news reports today.

The Web site, http://smartphone.modaco.com, which is previewing a photo of the handset, said the device will be manufactured for Motorola by Chi Mei Communication Systems of Taiwan with the design is based on the Smartphone 2002 operating system.

Motorola, Nokia and other top handset makers are heavily invested in the Symbian operating system for mobile phones. A Microsoft partnership with Motorola on such a device would be a boon to the computer giant and help forge its position in the wireless handset space. Motorola also develops phones based on Symbian.

The wireless industry has been concerned that Microsoft will try to take a significant piece of the market, eventually gaining a monopoly as it has in the PC world.

Such an alliance would also be significant for Motorola, which although it maintains the No. 2 position in handset sales, has slipped in handset market share in recent years. Top phone manufacturer Nokia regards Microsoft as a competitor.

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