
Rumors of Microsoft launching its own phone have been doing the rounds for the last few weeks. First came the buzz about a Zune phone and then the chatter about a new smartphone.
Now Microsoft is responding and its answer is No. "Microsoft is not doing a phone," a Microsoft spokesperson told the Wall Street Journal.
Speculation about a Microsoft phone recently intensified. Microsoft could release a Zune phone at the Consumer Electronics Show in Las Vegas based on its struggling media player platform, said Trip Chowdhry, an analyst at Global Equities Research two months ago. A Zunephone never made its debut at CES.
That didn’t stop two other Wall Street analysts from making a new prediction earlier this week. Microsoft is preparing to launch its own device in the second half of the year said Rob Sanderson and Mark McKechnie from research firm Broadpoint AmTech citing "multiple industry sources."
As bloggers worked themselves into a frenzy over the latest tidbit, Microsoft stepped in with its denial.
Much of the talk about a Microsoft smartphone is the result of the company’s Windows Mobile operating system facing increasing threat from other platforms. In the last few months, Google’s open source mobile OS, Android, has bagged the attention of handset makers. Motorola, HTC and LG among others are working on new Android-based phones to be introduced later this year. Even Palm, a Windows Mobile loyalist, plans to move away and introduce its own operating system for upcoming Palm Pre phone.
With Windows Mobile, Microsoft has said earlier it cannot afford to build its own device. Windows Mobile depends on other handset makers for distribution and the company would rather not compete with its partners.
Photo: Treo 500w with Windows Mobile (jeffwilcox/Flickr)

