Rumor Mill: Microsoft may launch two smartphones using WinMo 7.0

Rumors are circulating once again about Microsoft entering the smartphone market. Although the software giant has denied any intention of making a mobile device (the firm only licenses the software), reports indicate the company is developing two smartphones through its Danger subsidiary. Danger, the firm behind the T-Mobile USA Sidekick line of devices, was acquired by Microsoft last year.

Unlike previous rumors, these reports include some detailed descriptions of the proposed devices. Specifically, reports say that one device, codenamed Turtle, will have a square-ish shape and a sliding keyboard. The second device, codenamed Pure, will be rectangular and have a slider. Both devices will supposedly be manufactured by Sharp, which was an OEM for the Sidekick line. Speculation is high that the operating system for both will be Windows Mobile 7.0, and the phones will be introduced at CES but not released until later in 2010.

Earlier this year, the Wall Street Journal, citing unnamed sources, said that Microsoft was working with Verizon on a device, code-named "Pink," that would have additional software capabilities and feature Microsoft's Windows Marketplace for Mobile. There have also been rumors about a possible Microsoft smartphone based on the software giant's Zune digital music player.

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