Microsoft's 'Pink' Smartphone Project In Danger

Microsoft and Verizon Wireless have reportedly been working on a Microsoft-branded touch-screen smartphone that Verizon could launch on its network as early as next year. The smartphone, code-named Pink, would consist of Microsoft software running on a third-party device, according to sources familiar with the project. However, Microsoft has encountered major setbacks that have affected its schedule for bringing Pink to market, sources said.

The delays have many wondering if the mobile industry is moving on without Windows Mobile. Motorola CEO Sanjay Jha last month revealed plans to launch several smartphones based on Google's Android platform later this year, but didn't even mention Windows Mobile, despite earlier assertions that Motorola would bring Windows Mobile smartphones to market this year.

Pink was originally intended to tap into the underlying technologies of Windows Mobile 7, which was expected to be ready this year. But repeated Windows Mobile 7 delays have forced Pink developers to use other Microsoft technologies that require more work to implement, according to sources close to the matter.

Representatives from Verizon declined to comment for this story, and a Microsoft spokesperson offered the following statement via e-mail: "Microsoft's strategy has not changed; it is and has always been to provide a software platform for the industry. We work closely with many mobile operators and device makers around the world because customers want different experiences on a variety of phones."

The Pink delays illustrate how the slow pace of Windows Mobile development is hurting Microsoft's ability to compete in the smartphone market. iPhone sales recently propelled Apple to its best non-holiday season quarter in company history. RIM's BlackBerry Curve eclipsed iPhone sales during the first quarter, according to The NPD Group. And Google's Linux-based Android is attracting growing attention from device makers looking to shave costs.

Meanwhile, Microsoft is struggling to revamp Windows Mobile and keep pace with hard-charging competitors. According to Gartner, Windows Mobile market share stood at 12.4 percent at the beginning of the year, compared to 10.7 percent for Mac OS X, 19.5 percent for RIM and 47.1 percent for Symbian.

Particularly galling for Microsoft is the fact that RIM has successfully moved from its business roots into the consumer space, which is exactly what Microsoft is trying to do with Windows Mobile. Microsoft says Windows Mobile 7 will offer a user experience commensurate with that of the highest-end smartphones on the market, but hasn't said much about what features it'll include.

Next: The Impact Of Windows Mobile Delays