Microsoft has no plans to develop a new smartphone, according to Microsoft’s CFO of mobile communication. In response to a question about new mobile phone hardware, Microsoft’s Tivanka Ellawala told a group of investors during a San Francisco conference that “We are in the software business and that is where our business will be focused”.
Still reeling from its ill-fated Kin handsets, the Redmond company is not willing to sink another $240 million or more into new hardware. This software-only decision sets them apart from its competitors who are not so willing to place their eggs in one basket and are merging their mobile hardware and software platforms.
HP recently purchased Palm for its webOS platform and is looking to integrate these mobile devices into is hardware and software services. Similarly, longtime hardware manufacturer HTC is also putting a lot of effort into developing the software-side of its Android efforts. Known for its impressive hardware, the Taiwanese company recently announced a new version of its Sense UI for Android and unveiled its HTCSense.com, a cloud based backup and remote control service for its handsets.
Microsoft is betting the bank on its upcoming Windows Phone 7 mobile OS. Initial reviews have been mostly favorable and the software giant is garnering much attention for this mobile OS. It’s $500 million dollar investment in marketing can only help get all eyes on this mobile OS. Slick marketing can only go so far and the platform will have to deliver upon its promises when it launches later this year.