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Edition: U.S. Article Comments (0) Email Print Reprints Read Hungary races to build dam amid new sludge threat | 10 Oct 2010 IMF told to toughen scrutiny of rich powers | 10 Oct 2010 North Korea's heir debuts at giant military parade | 10 Oct 2010 Analysis: The return of "great power politics" 08 Oct 2010 Japan "urges China to set up communication system" 2:51am EDT Discussed 94 Super-rich investors buying gold by the ton 62 White House reviewing bill’s foreclosure impact 50 Aviation deal clears way for emissions scheme: EU Watched Red faces over top model gaffe Tue, Sep 28 2010 N. Korea heir debuts at giant parade Sun, Oct 10 2010 Inside the rescue shaft Sat, Oct 9 2010 Special Report The Pentagon's cyber warriors Cyber warfare has the potential to cause massive disruption. But not everyone agrees that the Pentagon is right for the job of protecting the country from virtual attacks -- some even say it's risky. Reuters takes an inside look at the U.S. military's preparation for digital combat. Full Article Cyber Command slips behind schedule Extremist websites booming, but hard to police Microsoft readies new phone launch with AT&T Tweet This Share on LinkedIn Share on Facebook Related News Google getting larger in Apple's rearview mirror Fri, Oct 8 2010 Microsoft licenses some Palm smartphone patents Thu, Oct 7 2010 Microsoft licenses some Palm smartphone patents Thu, Oct 7 2010 UPDATE 3-Adobe shares jump on Microsoft buy report Thu, Oct 7 2010 RPT-UPDATE 1-Smartphone maker HTC Q3 profit almost doubles Wed, Oct 6 2010 Related Topics Technology » Media » iPad » Stocks By Bill Rigby NEW YORK | Mon Oct 11, 2010 12:23am EDT NEW YORK (Reuters) - Microsoft Corp is set to unveil a new line of phones running its Windows software on Monday, as it attempts to pull back market share from Apple Inc's iPhone and Google Inc's Android system in the fast-growing market for multi-featured 'smartphones'. The world's largest software company is hoping that the new phones, from handset makers such as Samsung, LG and HTC, will propel it back into the mobile market, which many see as the key to the future of computing. The new phones, initially available on AT&T Inc's network, have already been shown off in prototype form, and are much closer in look and feel to Apple's iPhone, with colorful touch-screens and 'tiles' for easy access to e-mail, the web, music and other applications. Some analysts say they represent Microsoft's last chance to catch up with rivals, which overtook them in the past few years. Handsets are not expected to appear in stores for a month, so their success may not be judged until the new year. Microsoft has just a 5 percent share of the global smartphone market, according to research firm Gartner, compared with 9 percent a year ago. Google's Android system has a 17 percent market share, jumping from only 2 percent a year ago. The market for multi-feature phones that allow users to e-mail, surf the web and play games, as well as have access to music and video is set to expand massively. Gartner expects almost 270 million smartphones to be sold around the world this year, up 56 percent from last year. In comparison, Gartner expects only a 19 percent increase in worldwide PC sales to 368 million units this year. Microsoft, whose stock is trading at the same level it was eight years ago, has been struggling to find a footing in phones and mobile computing. Its share price has fallen almost 20 percent so far this year. Earlier this year, Microsoft yanked its Kin phone aimed at teenagers off the market less than three months after launch. There are still no signs of an imminent Windows-powered tablet device to counter Apple's hot-selling iPad. TOUGH ENVIRONMENT Microsoft's new phones will have a tough job elbowing aside a revamped set of rivals. In August, Research in Motion Ltd launched its new $200 BlackBerry Torch, with a touchscreen and slide-out keyboard. In June, Apple launched its new $200 to $300 iPhone 4, which is selling well despite some antenna problems. A slew of similarly priced Android phones, such as Motorola Inc's Droid X and Samsung's Galaxy series are also grabbing customers. 1 2 Next Technology Media iPad 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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