• The Wall Street Journal, Friday, September 17, 2010 11:50 AM

Following the disastrous launch of its ill-fated Kin mobile phone, Microsoft has all but sworn off hardware, reports The Wall Street Journal. "We are in the software business and that is where our business will be focused," Tivanka Ellawala, Microsoft's mobile-communication business, told investors at a conference in San Francisco on Thursday.

According to The Journal's Digits blog, Ellawale made the remark in response to a question about rumors that Microsoft 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," Digits notes. "It also comes as a growing number of software giants, including Oracle Corp. and Hewlett-Packard Co., move outside of their traditional markets to offer customers integrated hardware and software products." Ellawala said phones running on Windows Phone 7 will drive demand for data services, which should be good news for telecommunications operators, Digits notes.

Read the whole story at The Wall Street Journal »