Microsoft to go hardware in mobile space

While much of Microsoft’s focus this week was on pimping its wares around the upcoming launch of Windows 7 mobile, the Redmond-based software behemoth could not escape rampant speculations about the future of “Project Pink” and when we would finally see the long awaited entry of Microsoft into the Smart Phone market.

According to Northeast Securities analyst Ashok Kumar, Microsoft is working exclusively with Asustek to develop a Windows 7-based mobile device for release sometime in 2011.  

The device is expected to follow the candy bar touchscreen form factor and go head to head with the Apple’s iPhone and Google’s Nexus series in the battle royal for mobile phone supremacy.

According to Kumar the production of the phone has faced delays which were likely caused by software issues (We guess the blue screen of death has now gone mobile) which means we shouldn’t expect to see the device hit shelves until sometime in 2011.

The news comes just four days after Microsoft’s Windows 7 MWC announcement that committed to delivering availability of the Zune-like OS to customers for the “Holiday Season”.