Behind Your Business

This week, the rumor mill was busy with speculation about Microsoft and Verizon Wireless developing a smartphone to compete with Apple's iPhone.

Now, citing unnamed sources, The Wall Street Journal is reporting that the software giant and the mobile-phone carrier are in talks to develop a multimedia touchscreen phone, code-named Pink. The device is expected to be available next year.

Jeffrey Nelson from Verizon Wireless, however, declined to confirm any of the reports, saying, "We're not commenting on this sort of marketplace rumor."

Project Pink

The Journal reported that Verizon has been working for several months on Pink, a project started by Microsoft, to develop the touchscreen multimedia cell phone for Verizon's network.

The device would include music and video functionality, as well as software that would add another platform to extend Windows Mobile. Windows Marketplace for Mobile, Microsoft's new app store, is also likely to be included, according to the Journal.

The Pink project is building on both the hardware and software knowledge that Microsoft gained from its acquisition of Danger, creator of the T-Mobile Sidekick, last year.

Too Little, Too Late?

Analysts believe it may be too late for any "iPhone killer," as Apple has had the lead for some time.

"It might mean that Verizon Wireless holds on to a few more customers," said Ken Dulaney, vice president with Gartner. "But it does not bring customers to Verizon Wireless."

As for Microsoft, there would be some issues with the operating system and user interface.

"One, it would have to be using Windows Mobile 6.5, which is nowhere near the iPhone in terms of user experience. That is why Microsoft is planning Windows Mobile 7, which we don't believe is due until year-end 2010," Dulaney explained.

The device could use HTC's TouchFLO interface, which is layered on top of Windows Mobile 6.5.

"They have been working...

The Walt Disney Company on Thursday announced what many analysts have been predicting: It's buying a stake in online video-content aggregator Hulu.

Through a subsidiary of ABC Enterprises, Disney will join NBC Universal, News Corp., and Providence Equity Partners as a joint-venture partner and equity owner of Hulu. Disney is taking a 30 percent stake in the quasi-YouTube competitor.

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers, and today's Hulu announcement is the next important step in that ongoing journey," said Robert Iger, president and CEO of Disney. "Disney and Hulu share a focus on delivering the highest-quality entertainment experience, and we look forward to working with Hulu to build value for our consumers, our brands, and our shareholders."

Hulu's Digital Windfall

When the deal closes, Hulu will get more Disney programming. Specifically, Hulu will host full-length episodes of hit programs like Lost, Grey's Anatomy, Desperate Housewives, Private Practice, Ugly Betty, Scrubs, Greek, Hope and Faith, Less Than Perfect, Wizards of Waverly Place, and Phineas and Ferb. These and other hit series will soon be streamed on Hulu on an ad-supported basis.

"We're honored to welcome the Disney team in our mission to help people find and enjoy the world's premium content when, where and how they want it," said Jason Kilar, CEO of Hulu. "With the addition of shows like Lost, Desperate Housewives, Grey's Anatomy and many more to Hulu, we continue to aspire to deliver a service that users, advertisers and content owners unabashedly love."

Hulu was founded in March 2007 as an online video service with a selection of hit shows, clips, movies and other video content. Today, nearly 150 content companies, including FOX, NBC Universal, Comedy Central, Lionsgate, MGM, MTV...

Motorola posted a loss of $231 million for the first three months this year, with declining sales in its more profitable business units failing to offset continuing declines at its mobile-devices division.

However, the loss was smaller than analysts anticipated and Motorola indicated that there's light at the end of the tunnel. The company plans to launch a new line of Android-based smartphones by year's end that focus on the delivery of multimedia, messaging, Web browsing, and mobility, said Motorola Co-CEO Sanjay Jha.

"We are in detailed discussions with multiple carriers around the world about a few of our Android smartphones that we intend to launch in the fourth quarter," Jha said. "Customer feedback on our smartphone road map remains very positive. We will launch with multiple carriers and not just in North America."

A Long Way To Go

Still, Motorola undoubtedly is keeping an eye on North America, where smartphones sales are booming, racking up 69 percent growth in 2008. The introduction of new products in last year's fourth quarter, such as the RIM BlackBerry Storm and the Android-based T-Mobile G1, "helped smartphone sales grow to account for roughly 20 percent of total sales in the region," noted Gartner Principal Analyst Hughes De La Vergne.

But Motorola has a long way to go between now and the final quarter of 2009. The handset maker slipped to fifth place in the worldwide vendor ranking in last year's fourth quarter, with a market-share loss of 5.6 percentage points on a year-to-year basis. Gartner analysts cited a lack of 3G products and touchscreen devices, and poor support for "hot" features like GPS.

Jha noted that Motorola shipped 14.7 million handsets in its latest quarter on strong demand for prepaid phones, but that's a far cry from the 24.7 million mobile devices it shipped...

Microsoft has a lot riding on the upcoming release of its new operating system, Windows 7, and it's doing everything possible to insure that the software gets a favorable reception -- including effectively giving it away for free for the first year.

Starting Thursday, MSDN and TechNet subscribers can download the official release candidate for testing. The general public will be able to get downloads beginning May 5. The RC version of Windows 7 will not expire until June 1, 2010.

There were some initial reports that demand for the RC software was so heavy that Microsoft's servers failed under the load, and visitors were greeted with the message "We're sorry! The page you were expecting to see has been removed or is unavailable." By early afternoon, however, the servers were back up and running.

Almost Perfect?

The release candidate is considered by Microsoft to be a "near-finished" product, with only minor changes likely before to the official Windows 7 release late this year or early next year. According to company representatives, the milestone means the software is ready "for partners to develop new applications, device drivers, and services, and ready for IT pros to evaluate Windows 7 and examine how it will operate in their environment."

"Listening to our partners and customers has been fundamental to the development of Windows 7," said Bill Veghte, senior vice president for the Windows business at Microsoft. "We heard them and worked hard to deliver the highest-quality release candidate in the history of Windows."

Microsoft says more than 10,000 companies have signed up for access to development tools designed to help existing software and hardware work with Windows 7.

Home Run Needed

It's a little difficult to reconcile Microsoft's earnings last quarter of $13.65 billion with its palpable sense of urgency over the success of Windows 7. But there is no...

AFP - Shares in London posted gains for a second straight day on Thursday as banks again led the way.