(RTTNews) - Microsoft Corp. (MSFT), the world's largest software company, is planning to launch smartphones using the revamped version of its mobile operating system, the Wall Street Journal reported Friday, citing people familiar with the launch plans. The products, which would be unveiled formally on October 11 in New York with satellite events elsewhere, will be marketed by AT&T Inc. (T) starting November 8.
Competition in the smart phone market is getting hotter, with Apple Inc.'s (AAPL) iPhone and a number of flashier consumer friendly devices using Google Inc.'s (GOOG) Android mobile software making significant inroads. Nokia's Symbian OS and Research In Motion's Blackberry OS are also in the fray.
The WSJ report suggests that AT&T will be the initial exclusive U.S. carrier to sell the Windows Phone 7 smartphones. The carrier will offer three handsets initially, one each made by Samsung Electronics Co. (SSNLF.PK, SSNNF.PK), LG Electronics Inc. (LGERF.PK), and HTC Corp. The deal will help AT&T, especially when the chatter of Apple allying with Verizon is getting louder. AT&T has thus far been the exclusive carrier of iPhone in the U.S.
Microsoft's Windows Mobile operating system was once commonly found in the smartphones, but the company failed to materially update its software and fell behind, following the emergence of the iPhone in 2007 as well as Google's Android. According to Gartner, Microsoft's share of the smartphone operating system market in the last year has nearly halved, falling to 5% in the second quarter from 9.3% a year ago.
Microsoft, along with carrier partner Verizon Wireless, launched a line of Kin phones, but scrapped it in July after only two months in the market. As per the report, Windows Phone 7 represents the company's chance to start over with a new platform. Microsoft, like Apple, is insisting on a closed, controlled system where applications can only be sold through the Windows Marketplace.
Meanwhile separately, Microsoft revealed in a filing with the Securities and Exchange Commission that its Chief Executive Steve Ballmer's total compensation for the year 2010 increased 5.9% year-over-year to $1.34 million, but lower than his maximum compensation opportunity.
Microsoft noted that Ballmer received a cash bonus of $670,000 for the fiscal year 2010, equal to his base salary and higher than his last year's cash bonus of $600,000.
Microsoft acknowledged Ballmer's role in helping the company report strong earnings and revenue in fiscal 2010, successfully launching products, including Windows 7 and Office 2010, cost cuts and spearheading cloud computing and active gaming efforts. On the flip side, the company also made note of the the unsuccessful launch of the Kin phone, loss of market share in the company's mobile phone business and the need to pursue innovations to take advantage of new form factors.
For fiscal year 2010, Ballmer's maximum compensation opportunity was $2,010,000, consisting of base salary and a potential Incentive Plan award of up to 200% of his base salary for the fiscal year.
The Annual Meeting of the Shareholders of Microsoft will be held at Washington on November 16.
MSFT closed Thursday's regular trading session at $24.49, down $0.01 or 0.04%, on a volume of 61.3 million shares
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