According to the Wall Street Journal and others, Microsoft is in talks with Verizon to roll out an iPhone killer next year. Verizon desperately wishes that it and not AT&T had the iPhone. Microsoft desperately wants to do something right outside of Windows etc.
My take? Microsoft will spend a zillion dollars trying to create something close to the iPhone then Apple will come in at the last moment or when an upgrade is ready around that time and waltz into Verizon.
I could be wrong. I don't like Microsoft's chances though.
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