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By AMOL SHARMA and NICK WINGFIELD
Microsoft Corp. is in discussions with Verizon Wireless to launch a touch-screen multimedia cellphone on the carrier's network early next year, in a bid to compete with Apple Inc.'s iPhone, people familiar with the matter said.Microsoft's project, which is code-named "Pink," is aiming to produce a phone that extends the tech giant's Windows Mobile cellphone operating system, adding new software capabilities. It would also likely include Microsoft's new Windows Marketplace for Mobile, a mobile application store along the lines of Apple's, these people said.While Microsoft is involved in the design of the phone's software and hardware, a third-party is expected to make the device, just as Google Inc. has worked closely with partners to make handsets based on its Android operating system, people familiar with the matter say.
The Microsoft-Verizon relationship is evolving from a more limited search-and-advertising partnership the companies struck early this year. The two companies are looking for a response to the iPhone, which has boosted the fortunes of their rivals, Apple and AT&T Inc. AT&T's exclusive rights to the iPhone in the U.S. expire next year, but the carrier is trying to get a one-year extension, people familiar with the matter say. Apple has had discussions with Verizon in recent months about its product roadmap, including a mobile multimedia device that is bigger than the iPod Touch but smaller than a laptop, one person familiar with the situation said. However, the talks have not become advanced, the person said. Some analysts say Apple may simply be trying to gain negotiating leverage over AT&T by holding early talks with Verizon.
Microsoft Corp. is in discussions with Verizon Wireless to launch a touch-screen multimedia cellphone on the carrier's network early next year, in a bid to compete with Apple Inc.'s iPhone, people familiar with the matter said.Microsoft's project, which is code-named "Pink," is aiming to produce a phone that extends the tech giant's Windows Mobile cellphone operating system, adding new software capabilities. It would also likely include Microsoft's new Windows Marketplace for Mobile, a mobile application store along the lines of Apple's, these people said.While Microsoft is involved in the design of the phone's software and hardware, a third-party is expected to make the device, just as Google Inc. has worked closely with partners to make handsets based on its Android operating system, people familiar with the matter say.
The Microsoft-Verizon relationship is evolving from a more limited search-and-advertising partnership the companies struck early this year. The two companies are looking for a response to the iPhone, which has boosted the fortunes of their rivals, Apple and AT&T Inc. AT&T's exclusive rights to the iPhone in the U.S. expire next year, but the carrier is trying to get a one-year extension, people familiar with the matter say. Apple has had discussions with Verizon in recent months about its product roadmap, including a mobile multimedia device that is bigger than the iPod Touch but smaller than a laptop, one person familiar with the situation said. However, the talks have not become advanced, the person said. Some analysts say Apple may simply be trying to gain negotiating leverage over AT&T by holding early talks with Verizon.
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