US wireless kingpin Verizon (VZ) has reportedly emerged as the preferred carrier for Microsoft’s (MSFT) forthcoming smartphones. The new devices, which represent part of Microsoft’s development project called “Pink,” are likely to hit the shelves in April 2010 and will be sold by Verizon. This is good news for Verizon customers, who will be the first in the US to experience the long-awaited Pink phones.
Microsoft plans to hold a press conference on April 12, 2010, to introduce its Pink smartphones. The devices are likely to feature a sliding keypad and large display and are expected to be made by the Japanese electronics vendor Sharp Corporation. Also, the new phones will be tailor-made to offer text messaging and social-networking capabilities and will be targeted at the youth segment.
For Microsoft, it makes a lot of sense to have preferred Verizon over the other Tier-1 carriers for the Pink smartphones. With more than 90 million subscribers (the largest among the US carriers) and extensive network coverage, Verizon will offer a strong launch pad for the new devices. Microsoft, which faces stiff challenges from Apple’s (AAPL) iPhones, seems to be desperate in recovering some of the lost ground in the US cell phone market.
The Pink phones are expected to be an upgrade from Microsoft’s “Sidekick” phones, which are being sold by Deutsche Telekom’s (DT) US unit T-Mobile USA. However, these phones should not be confused with Microsoft’s much-awaited smartphones based on the new “Windows Phone 7″ operating system, which represent the company’s big bet to take on the iPhone and BlackBerry. The Windows Phone 7 series of smartphones are expected to reach the market in late 2010.
Verizon continues to expand its smatrphone range in an effort to boost data ARPU (average revenue per user). Data revenue, which represent a major component of the carrier’s service revenues, continues to grow at a brisk rate, driven by the healthy customer adoption of high-end smartphones and associated data plans, thanks to the bandwidth-hogging multimedia applications.
In addition to the BlackBerrys and Palm smartphones, Verizon is aggressively marketing Motorola’s (MOT) Droid (on the Android-based sytem) phone in the US . Verizon is involved in a costly promotional war with AT&T (T) to aggressively position Droid against the iPhone.
Verizon is expected to carry Google’s (GOOG) own branded Android smartphone Nexus One. Moreover, speculation has been rife about the carrier offering the iPhone in the near future. The opportunity to sell the Pink smartphones will not only expand the periphery of Verizon’s handset offerings, but will also boost its opportunity in the rapidly growing mobile data market.
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