Rumors Persist About Microsoft Phone

Paul Lilly

Despite ongoing rumors to the contrary, Microsoft has continually denied it has plans to release a smartphone. But that's not true, according to analysts Rob Sanderson and Mark McKechnie at Broadpoint AmTech.

"MSFT Smart-Phone Launch? Multiple industry sources are telling us that MSFT is planning to launch a smartphone," AmTech wrote in a memo . "We are told it will be a 2H launch."

AmTech goes on to describe Microsoft's strategy as "a bit puzzling," pointing out that a Microsoft-branded smartphone may alienate existing Windows Mobile customers who would be forced to compete with the software giant in hardware. Nevertheless, AmTech claims an official announcement could be forthcoming at 3GSM in Barcelona on February 16th, or at another analyst event in New York on February 24th.

So what's our take? We'll see a Microsoft smartphone about the same time as the company releases a Blu-ray capable Xbox 360 console.

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