Microsoft: Smartphone Rumors Crop Up Again

Not for the first time, there are rumors floating around suggesting that Microsoft (MSFT) is planning to launch its own smartphone. The last round of rumors came in November ; with the 3GSM trade show coming up soon, they have re-emerged. Broadpoint.Amtech analysts Rob Sanderson and Mark McKechnie write is a brief research note that “multiple industry sources” say the company is working on a smartphone and that it will launch in the second half. They say that one takeaway is that the vertically integrated model used by Apple (AAPL) , Research in Motion (RIMM) and now Palm (PALM) is “proving to be the preferred model.” The analysts also write that Microsoft’s strategy is “a bit puzzling,” and may reflect frustration that Windows Mobile is getting less attention that RIMM, Apple and even Google (GOOG) with its Android platform. They warn that the company “may alienate some of their existing Windows Mobile customers who will now ... (link)