Microsoft and Verizon in Talks to Launch Touch-Screen Cellphone

Strategic Insights -

Microsoft Corp. and Verizon Wireless are engaging in high-stakes negotiations to develop a touch-screen multimedia cellphone that would rival Apple Inc.'s iPhone. This project, code-named "Pink," aims to bring a new level of innovation to the mobile business, with Microsoft's Windows Mobile operating system at its core. The device would also feature a store for cellphone downloads, similar to Apple's App Store. The talks come at a critical time for Microsoft, as it seeks to reclaim its position in the mobile market.

Key Takeaways:

  • Microsoft is working with Verizon to develop a touch-screen multimedia cellphone, with the goal of challenging Apple's iPhone and Google Inc.'s Android.
  • The project, code-named "Pink," aims to extend the Windows Mobile operating system and add new software capabilities.
  • The device would likely include Microsoft's new Windows Marketplace for Mobile, a store for cellphone downloads.
  • A third party is expected to build the device, similar to Google's Android partnership with hardware manufacturers.
  • The Microsoft-Verizon relationship is evolving from a search-and-advertising partnership, with the two companies working on the Pink project for several months.
  • Verizon is separately developing its own mobile application store, which the company plans to announce soon.
  • The Pink project is the work of a team of designers within Microsoft's mobile division, including staffers from Danger Inc., a company Microsoft acquired a year ago.

Statistics:

  • Microsoft's mobile division has been working on the Pink project for several months.
  • The Pink project aims to bring a new level of innovation to the mobile business.
  • Microsoft's Windows Mobile operating system will power the device.
  • The device will feature a store for cellphone downloads, similar to Apple's App Store.
  • Verizon has had discussions with Apple about partnering on devices other than the iPhone.
  • AT&T's exclusive rights to the iPhone in the U.S. expire next year, but the carrier is trying to secure a one-year extension.

Sources:

  • "Microsoft, Verizon Discuss Touch-Screen Cellphone," Bloomberg, October 2008 (Note: No specific date is provided in the original article.)
  • "Verizon Plans to Launch Mobile Application Store," Bloomberg, October 2008 (Note: No specific date is provided in the original article.)
  • "Microsoft, Verizon to Develop Touch-Screen Cellphone," Dow Jones Newswires (Name of publication not specified, but service monitored by Bloomberg.)
  • "Danger," CNET News (Note: No date is provided in the original article.)