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Report: Microsoft Developing iPod Challenger

29 Mar, 2006 By: Erik Gruenwedel

Microsoft Corp. CEO Steve Ballmer said the Redmond, Wash.-based software behemoth intends to have an MP3-compatible cell phone on the market by early next year.

Ballmer told Fortune magazine he doubts consumers in five years would want to carry both a mobile phone and an iPod. Microsoft Mobile software reportedly dominates the PDA and smart-phone markets.

“There's going to be a lot of opportunities to get back in that game,” said Ballmer. “We want to be in that game. Expect to see announcements from us in that area in the next 12 months.”

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