Following the failure of the Kin smartphones, it appears Microsoft is no longer interested in manufacturing smartphones. According to Tivanka Ellawala, Microsoft's mobile communication business CFO, the company will keep its focus on the software business:
“We are in the software business and that is where our business will be focused,” Tivanka Ellawala told investors at a conference in San Francisco. He made the remark in response to a question about rumors that the Redmond, Wash.-based behemoth is working on a new phone.
Ellawala’s comments come as Microsoft tries to rejuvenate its mobile-phone business with a new operating system, dubbed Windows Phone 7. It also comes as a growing number of software giants, including Oracle Corp. (ORCL) and Hewlett-Packard Co. (HPQ), move outside of their traditional markets to offer customers integrated hardware and software products.