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Edition: U.S. Article Comments (1) Save Email Print Reprints Most Popular Most Shared "Last Airbender" another failure for Shyamalan 30 Jun 2010 Singer murdered after denying he was dead 29 Jun 2010 UPDATE 3-Toyota mulling fix for possible engine defect 12:10am EDT House passes landmark financial reform bill | Video 12:53am EDT WRAPUP 1-BP oil spill cleanup work hampered by hurricane 1:13am EDT Rights group files suit over U.S. no-fly list 30 Jun 2010 Amazon launches cheaper Kindle 1:45am EDT Microsoft pulls plug on Kin phones 30 Jun 2010 ANALYSIS - Arrests show U.S.-Russia spies' covert war lives on 29 Jun 2010 UPDATE 3-Medicare looking at Dendreon cancer vaccine 30 Jun 2010 Cold War support for Russian "spies" on networking site | Video 30 Jun 2010 UPDATE 1-U.S. Congress backs home tax credit extension 30 Jun 2010 Singer murdered after denying he was dead 29 Jun 2010 Russia and U.S. downplay spy case | Video 12:56am EDT Scrap dollar as sole reserve currency: U.N. report 29 Jun 2010 Yahoo board approves $3 billion stock buyback 30 Jun 2010 Special Report: BP oil spill a gusher for lawyers 30 Jun 2010 WRAPUP 1-BP oil spill cleanup work hampered by hurricane 1:13am EDT Sony: 535,000 Vaio PCs may have overheating glitch 30 Jun 2010 Iran says its enemies deserved to fail in Cup 29 Jun 2010 Pictures Tech watch A recent sampling of our best pictures from the world of science and technology. Slideshow Microsoft pulls plug on Kin phones Alexei Oreskovic SAN FRANCISCO Wed Jun 30, 2010 9:09pm EDT Related News Verizon Wireless to carry iPhone in 2011: report Tue, Jun 29 2010 Verizon Wireless to carry iPhone in 2011-Bloomberg Tue, Jun 29 2010 Five top U.S. operators pick Samsung Galaxy S phones Mon, Jun 28 2010 Five top US operators pick Samsung Galaxy S phones Mon, Jun 28 2010 Verizon and Motorola to battle iPhone with Droid X Thu, Jun 24 2010 An attendee takes a picture of a new smart phone called Kin Two (L) at a Microsoft news conference in San Francisco, California April 12, 2010. Credit: Reuters/Robert Galbraith SAN FRANCISCO (Reuters) - Microsoft Corp has pulled the plug on a new generation of smartphones less than three months after unveiling the devices that were part of its efforts to catch-up with Apple Inc and Google Inc in the fast-growing mobile market. ipad | Media Microsoft said on Wednesday it had canceled plans to sell its "Kin" phones in Europe this Fall. The company added the internal team working on the Kin phones would be combined with the group working on Microsoft's forthcoming Windows Phone 7 software. "We will continue to work with Verizon in the U.S. to sell current Kin phones," Microsoft said in an emailed statement. The move underscores the challenges facing Microsoft, whose software is used on the vast majority of the world's PCs, as it strives to adapt to consumers' growing taste for handheld Internet-connected gadgets like smartphones. In April, Microsoft said it was shelving an internal project to develop a tablet PC similar to Apple's iPad. Last month, Microsoft reorganized its mobile phone and video game division, announcing that longtime Microsoft executive Robbie Bach would retire and that the senior vice presidents in charge of phones and games would report directly to Chief Executive Steve Ballmer. Ballmer is "looking at the (mobile) business, seeing what's making money, what makes sense to do going forward," said Matt Rosoff, an analyst with Directions on Microsoft. The Kin phones represented software giant Microsoft's first foray into designing its own phones. The two Kin models featured built-in Internet social networking functionality as well as Microsoft's Zune digital music player and were aimed at savvy young phone users. Microsoft began selling the Kin phones with Verizon Wireless in May. Verizon Wireless, the largest U.S. wireless operator, is a joint venture of Verizon Communications and Vodafone Group Plc. But Rosoff said the phones lacked certain key smartphone functions, such as the ability to install software applications, yet had wireless data service plans that were priced comparably to more full-featured devices like Apple's iPhone. The Kin was also based on a special Microsoft software called Windows Phone OS, even as Microsoft prepared to release the new Windows Phone 7 mobile operating system. Smartphones running Windows Phone 7 are expected to be available this holiday season. "Windows Phone 7 is the real mobile strategy," said Rosoff. "The fact that it (the Kin) was ever released in the first place was a mistake. When they went with Phone 7, they should have quietly killed this project." Verizon Wireless spokeswoman Brenda Raney said that the Kin remains an important part of the company's "portfolio." The smartphone market is exploding. According to research group Gartner, global sales rose nearly 50 percent in the first quarter. Microsoft had a 6.8 percent share of the global market for smartphone operating systems in the first quarter of 2010, according to Gartner. Google's Android had 9.6 percent, Apple's iPhone had 15.4 percent, while Blackberry-maker Research in Motion had a 15.4 percent share and Nokia's Symbian software had a 44.3 percent share. RBC Capital Markets analyst Robert Breza said that the battle to win the smartphone market is still in its early stages. "With their vast amount of resources, I would never want to count out Microsoft," he said. "They can acquire their way into it. They can approach it in a different strategy." Shares of Microsoft were up 61 cents, or 2.7 percent, at $23.62 in extended trading on Wednesday. (Reporting by Alexei Oreskovic with additional reporting by Sinead Carew; Editing by Sofina Mirza-Reid, Bernard Orr) ipad Media Comments See All Comments (1) | Post Comment Jun 30, 2010 9:02pm EDT Microsoft is so behind the times, it is so lucky that other corporations are too and lapping up Windows 7 the way they are STORYBURNcool Report As Abusive See All Comments (1) 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 Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs 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 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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