Motorola Set to Launch Microsoft Phone This Year Jul 25, 2003

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U.S.-based Motorola will launch a mobile phone based on Microsoft software later this year -- the first of the top five handset makers to do so, industry sources said.

"It will come later this year. They've been working on it for many months now," one industry source told Reuters.

Pictures of the new Motorola handset, to be produced by Taiwan's contract manufacturer Chi Mei Communication Systems circulated on discussion groups on the Internet (http://smartphone.modaco.com/).

Motorola and Microsoft were not immediately available to comment.

Motorola told Reuters in February it would bring out a Microsoft phone, mainly in response to U.S. operators' requests, but then declined to give details or timing. Motorola's model would be a clamshell with an internal antenna. Microsoft is struggling to break into the 450 million units a year mobile phone industry, but the major vendors have so far been reluctant to work with the software giant.

Some have said they fear Microsoft is out to dominate their industry, just like it rules in the personal computer sector where its Windows software is the main operating system.

Microsoft's software for mobile phones, which provides dressed-down Windows communications and computing tasks, is currently only available on handsets made by Taiwan's High Tech Computer. (Reuters)

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