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Current DateTime: 05:56:13 21 Nov 2009
LinksList Documentid: 31047929
Expiration DateTime: 11/21/2009 5:57:29 PM

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Current DateTime: 05:56:13 21 Nov 2009
LinksList Documentid: 31047922
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Nov.25
2:43 PM ET
Tuesday, 25 Nov 2008
Microsoft's Zune To Evolve Into New "Pink" Smart Phone?

I'm hearing from a good source that Microsoft is ready to give a major facelift to the company's Zune music player that could mean its evolution into a new smart phone from the company.

My source says that the new device falls under the codename "Pink" and that it will combine the company's Zune and technology from Microsoft's [MSFT  Loading...      ()   ] purchase of Danger Inc., the company that brought us the Sidekick flip phone available on T-Mobile.

As an aside, Danger's co-founder, Andy Rubin, took a job at Google and he was the driving force behind that company's Android mobile operating system, now powering that new G1 phone from T-Mobile. (Ironic that Google [GOOG  Loading...      ()   ] took Andy Rubin, developed a phone for T-Mobile, whose corporate color is pink, and that Microsoft would code-name its smart phone project "Pink.")

I'm hearing that a prototype of the new Pink could be unveiled as soon as the Consumer Electronics Show in January, but that it could be pushed back into a February release. Some reports suggest the phone could be released at the 3GSM conference and that a wide shipment release could be a year away. The idea, my source says, is to develop a product that offers true competition to Apple's iPhone which continues to enjoy huge market momentum.

Apple [AAPL  Loading...      ()   ] and Research in Motion [RIMM  Loading...      ()   ] still generate the lion's share of media coverage when it comes to smart phones, but Microsoft powers a huge number of handsets thanks to its Windows Mobile operating system.

"Microsoft has not had much luck with their attempts in the phone market," says Pacific Crest Securities analyst Brendan Barnicle. "If it just becomes a way to sell the Microsoft enterprise (a problem Microsoft has suffered in the past), it could be hobbled by the other units."

He says Microsoft has a lot to prove, and will be challenged by a lot of skeptics with the company's foray into a sector already so crowded. Nonetheless, with Microsoft's reach, and the lessons learned from the mediocrity surrounding Zune, Pink might have some potential. Assuming Microsoft did in fact learn some lessons from Zune. Which might be a big assumption.

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