Microsoft To Unveil Zune Phone?

Market watcher says Redmond is looking to counter the iPhone and Nexus One with a phone of its own.

Microsoft is planning to introduce a Windows Mobile-based phone in the coming weeks in order to keep up with rivals Apple and Google, according to a financial analyst.

Jefferies stock picker Katherine Egbert said the company would likely unveil the device next month at the Mobile World Congress in San Francisco.

Alternately, the software maker might introduce its phone at the CTIA conference in March in Las Vegas. The pone would likely feature a built-in camera and HD video screen, Egbert said in an interview this week with BusinessWeek.

Microsoft is lagging in the phone sector. Windows Mobile’s share of the worldwide smartphone market was down to 7.9% as of the third quarter, according to Gartner. The Apple iPhone’s share stood at 17.1%, while RIM held 20.8%.

Read more: informationweek.com