Microsoft to challenge iPhone with its own smartphone

Computer software giant Microsoft is in talks with American telco Verizon about introducing a touch-screen multimedia device early next year to challenge the iPhone, according to the Wall Street Journal.

The talks are reportedly being driven by chief executive Steve Ballmer to help boost the mobile industry, which is being dominated by the Apple iPhone and the increasing popularity of Google’s Android operating system.

In a recent interview, Verizon chief executive Ivan Seidenberg did not comment on whether Verizon and Microsoft were planning such a device.

Code-named “Pink”, the device will reportedly run on the Windows Mobile operating system and will be constructed by a third-party.

The Wall Street Journal claims that the companies have been working on the project for several months, and that the device will be able to download and use applications from the Windows Marketplace, similar to the Apple App Store.

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