Microsoft Pulls Plug on Kin Phones

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July 1, 2010 2:24 PM EST

Microsoft Corp has pulled the plug on a new generation of smartphones less than three months after the company unveiled the devices in an attempt to catch-up with Apple and Google in the fast-growing mobile market.

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 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.

(Reporting by Alexei Oreskovic; Editing by Sofina Mirza-Reid)

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