Apple and Google both proved that no prior cell phone experience was needed to jump into the game. Apple is enjoying runaway success with the iPhone. And Google chief Eric Schmidt said this week that Android phone shipments are on pace to exceed 21 million units this year.
Last month, Google started selling an HTC-built Nexus One phone directly to consumers, a controversial move that served to undercut its Android partners, particularly Motorola (MOT).
Microsoft risks the chance of upsetting its own partnerships with hardware shops like HTC and Samsung, two of the manufactuers that have signed on to build new Windows-powered phones.
The move can be seen as only more bad news for other players in the already crowded smartphone market. Outfits like Palm (PALM) are simply clinging to life. And Microsoft's pervasive presence in businesses like desktop software and email servers could strike very close to Research In Motion's (RIMM) lucrative enterprise market.If Apple and Google's phone efforts have proved anything, having loads of money to throw at the project is a huge advantage. With $36 billion in cash and investments in hand, Microsoft has at least one edge on the competition. Microsoft and RIM shares were up 1%, while Motorola was down 1% in late trading Thursday. -- Written by Scott Moritz in New York
Twitter and become a fan of TheStreet.com on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV