Verizon Communications (VZ) Eyeing Launch Of Microsoft Phones
March 05, 2010 6:10 PM
Verizon Communications, Inc. (NYSE: VZ), a provider of communications services, will introduce two phones from Microsoft Corp. (NASDAQ: MSFT) in couple of months targeting teenagers, reported Bloomberg.
The models are designed to have an easy access to social-networking sites. The phones will be manufactured by Sharp Corp. This is the first time Microsoft will be launching a phone under its brand name, prior to which it use to just provide the operating system for various manufacturers.
By this move Microsoft aims to take Apple, Inc. (NASDAQ: AAPL) head on. Unlike Google, Inc. (NASDAQ: GOOG), Microsoft wants to leverage on expertise of Verizon to sell the phones as Nexus One phone will be sold solely by Google. Verizon is expanding its presence in smartphones segment, which will help it to crop up its revenues, this is because whenever customers wants to access internet on their smartphones they have to buy data plans from Verizon.
Research firm Gartner, Inc. (NYSE: IT) estimates smartphones segment to grow at 46% , compared to a 13% growth of total mobile phone market.
