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Edition: U.S. Article Comments (9) Email Print Reprints Read Microsoft hopes to bury iPhone, Android 01 Oct 2010 HP and new CEO brace for wave of software deals 01 Oct 2010 UPDATE 1-Bin Laden criticises Pakistan relief mission 01 Oct 2010 U.S. apologizes for syphilis experiment in Guatemala 01 Oct 2010 Microsoft sues Motorola over Android phones 01 Oct 2010 Shared Microsoft hopes to bury iPhone, Android 01 Oct 2010 Analysis: Burqa bans: France, then Netherlands - who's next? 01 Oct 2010 U.S. apologizes for syphilis experiment in Guatemala 01 Oct 2010 EXCLUSIVE: Small business borrowing jumps in August: PayNet | 01 Oct 2010 Health reform to worsen doctor shortage: group 30 Sep 2010 Watched Prints reveal NY’s wild 70’s period Thu, Sep 30 2010 Red faces over top model gaff Tue, Sep 28 2010 New planet could support life Thu, Sep 30 2010 Report Title Price Validea Guru Analysis Report for RIMM. 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Microsoft hopes to bury iPhone, Android Tweet This Share on LinkedIn Share on Facebook Microsoft CEO Steve Ballmer speaks during his keynote address at the Search Marketing Expo in Santa Clara, California March 2, 2010. Credit: Reuters/Robert Galbraith Related News Microsoft names veteran insider as Office head Fri, Oct 1 2010 UPDATE 2-Microsoft names veteran insider as Office head Fri, Oct 1 2010 Microsoft to launch smartphones; AT&T exclusive carrier - WSJ Fri, Oct 1 2010 Microsoft CEO bonus curbed for Kin, tablet failures Thu, Sep 30 2010 Google CEO says mobile revs small but growing fast Tue, Sep 28 2010 Analysis & Opinion When should investors sell their Apple stock? Related Topics Technology » Media » iPad » Stocks By Bill Rigby SEATTLE | Fri Oct 1, 2010 6:42pm EDT SEATTLE (Reuters) - Last month, a few hundred Microsoft Corp employees acted out their fantasy with a mock funeral for Apple Inc's iPhone at its Redmond, Washington campus. The bizarre gathering, which morphed into a spirited Michael Jackson "Thriller" dance routine, marked the completion of its Windows Phone 7 software, and showed how badly Microsoft wants to resurrect itself in the viciously competitive phone market. The new software, which will be publicly unveiled on October 11 and expected on handsets in stores by November, is Microsoft's last chance, some analysts say, to catch up with Apple and Google Inc's Android smartphones, after squandering its strong market position in only a few years. A group of smartphone manufacturers including Samsung and HTC Corp are expected to roll out Microsoft-based phones for the holiday season. Whether they will be good enough to render the iPhone obsolete is the question. "The product can't be an also-ran that just does everything that is already out in the marketplace," said Bryan Keane, an analyst for Alpine Mutual Funds, which holds Microsoft shares. "Right now, it isn't apparent that Windows 7 is better than anything that's out there, except that it might have a better tie-in to the actual Windows platform." By the admission of Microsoft Chief Executive Steve Ballmer, the company "missed a generation" with Windows Mobile, its last phone operating system, which floundered while the iPhone and Android roared past with sumptuous touch screens and a host of new applications. Microsoft is now fourth in the fast-growing U.S. market for smartphone operating systems with a share of less than 12 percent, according to research firm comScore, behind BlackBerry-maker Research in Motion Ltd, Apple and Google. STOCK OVERHANG Microsoft's strange disappearance from the phone market, and its delayed response to the emergence of tablet devices like Apple's iPad, has been seen as a drag on Microsoft's shares, which are down 20 percent this year. "The market is really fearful of their positioning in those two markets (phones and tablets)," said Ken Allen, Baltimore-based portfolio manager of T. Rowe Price's Science and Technology Fund, which holds Microsoft shares. "Tablets -- the iPad in particular -- and the smartphone market are major overhangs and discounted heavily in the stock." Investors were not impressed with Microsoft's last attempt to launch a new phone, the Kin, which was dropped after fewer than three months on the market. Whether the new phones can make up for that error and lift concerns will depend on how the handsets measure up and how much the network carriers promote the phones. Prototypes of the new devices, which have been demonstrated by Microsoft employees over the past few months, look to be a huge improvement over the last version of Microsoft's phone software. They have a touch-screen interface resembling the company's Zune music player and movable 'tiles' that access various phone functions. But at first glance, they don't appear to offer radical new features that rivals lack. 1 2 Next Technology Media iPad Comments See All Comments (9) | Post Comment Oct 01, 2010 6:53pm EDT Ahahahahaha! That’s my reaction. sandhuatretuers Report As Abusive Oct 01, 2010 7:17pm EDT Let see, a phone that will actually syncs social site content, work email, contacts, calender, folders, xbox, zune, photos, and a few other things to the phone, web and computer. Oh and is an open platform like Droid is but withe the vendor support/collaboration Microsoft has… - unlike google and Apple, sure I’d go for that. jabberwolf Report As Abusive Oct 01, 2010 7:18pm EDT So, Microsoft sues Motorola – the company that practically created the entire cellular phone market – for patent infringement. This seems like some sort of idiotic action to goad Motorola into producing a Windows Phone 7, doesn’t it? By their somewhat perplexing attempt to sue what is likely the king of kings in cellular patents, does this portend the collapse of Microsoft’s mobile market and stock price? I mean, who in the world doesn’t see this ending badly for Microsoft? Moto just needs to file a lawsuit and file a complaint with the ITC with a handful of their patents, and voila, Microsoft’s phones are vaporware just as fast as the Kin Phone. GRRR Report As Abusive Oct 01, 2010 7:19pm EDT Well at least they don’t lack self confidence. MDan Report As Abusive Oct 01, 2010 7:19pm EDT Well at least they don’t lack self confidence. MDan Report As Abusive Oct 01, 2010 7:19pm EDT Well at least they don’t lack self confidence. MDan Report As Abusive Oct 01, 2010 9:03pm EDT Regardless of the outcome, I would never buy a microsoft-based phone… EVER… seanmaui Report As Abusive Oct 01, 2010 9:09pm EDT Microsoft needs adult supervision. They need new top management. ereilad Report As Abusive Oct 01, 2010 9:10pm EDT Next year the kids will be wearing tablets from Aliexpress. No phone bills, the $100 computer realized. After that, feed them a little Humanism and watch them grow. Bon voyage! Dwight_Jones Report As Abusive See All Comments (9) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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