Is Microsoft working on its own smartphone? The release of its new tablet Surface this week opened doors for this huge possibility.
Analyst Rick Sherlund said that Microsoft could be further expanding its horizon by developing its own smartphone and may leave its hardware partners such as Nokia, Bloomberg reported.
The report also said that Sutherland wrote that Microsoft could be working with contract manufacturer in building its own handset. However, Sherlund said that he is not sure if the device is a reference design for its partners to be used in Windows-based phones or if it is building its own line.
"We would not be surprised if MSFT were to decide to bring their own handset to market next year given that MSFT has decided to bring to market their own Windows 8 tablet/PC products," Sherlund said.
In its introduction of the new mobile operating system - Windows Phone 8, Microsoft said that smartphones sporting the new OS will be launched by its partners Nokia, Huawei Technologies Co., HTC Corp. and Samsung Electronics Co. this fall. However, Bill Gates' company did not reveal any future plans of developing its own line of handsets.
This is not the first attempt of Microsoft in developing its own handset. In 2010, Microsoft released its own handset - Kin, which sold so poorly that the company stopped working on it and dropped the whole idea.
If the company is in fact working on its own smartphone, Microsoft is indeed experiencing a dire need to boost its market share in phone software, which is at present, only 2.2 percent.
Microsoft trails behind Google's Android, and Apple's iOS. According to IDC, Google's Android was the smartphone market leader in the first quarter, with a 59 percent share, and Apple followed with 23 percent.
On June 18, Microsoft said it will sell its own branded tablet computer, reversing its long-standing strategy of relying exclusively on hardware partners in the computer market.
Nevertheless, Sherlund recommended that people should buy shares of Microsoft as there is a great potential that the company will enjoy success in the next few months.
Microsoft is following the footsteps of Apple in becoming a company that produces its own software and hardware devices.
A lot of tech companies are venturing in making their own handsets. Amazon released its own device, Kindle Fire, that make huge waves in the market. Last year, Google bought Motorola presumably to work on its own smartphone.
Social media company Facebook are already working with former Apple engineers in developing its own communication device. However, no word yet as to when the two aforementioned companies willl reveal their respective handsets.
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