Microsoft yesterday moved closer to gaining a significant foothold in the mobile market with the launch of a phone which uses its software and will be sold by its long-term partner, Orange.
A year ago Orange launched the first Microsoft smartphone, the SPV, and today it will become the first operator to take the third model, the SPVe200.
The new phone, which is the first Microsoft handset to be Bluetooth enabled and to have a camera, will be available in time for the crucial Christmas season and will sell for less than ?200.
Orange, which has so far sold more than 100,000 SPVs in Europe, is hoping the new feature-packed phone will help it retain high value contract customers as it comes under increasing pressure from rivals such as T-Mobile and O2.
But a spokesman for Orange said it would not be drawn into a price war.
"The SPVe200 is aimed at the Christmas market, but I am expecting longevity from this phone. We're not going to get into a price war with people because we are about offering value for money, not necessarily being the cheapest," the spokesman said.
Microsoft will also publish a survey today which it hopes will persuade other networks to use its range of phones.
The mobile industry has so far been cautious about accepting Microsoft into the fold because of its reputation for dominance in the PC industry.
Microsoft has deals with 28 mobile operators worldwide, but only a handful have so far released handsets.
The survey, by Edge Strategies, looked at 1,000 Microsoft smartphone users and concluded that they spend 25 percent more on average than users of other phones.
Microsoft's mobility marketing manager, Annemarie Duffy, said the company is in talks with a number of operators about taking its phones.
"It's still very early days in what is a new category of phone, but as long as we continue to offer familiar applications to customers ... Microsoft does have a role to play in the mobile industry," she said.
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