Microsoft cuts price of smart phones

Seattle PI | at | by Mike

Microsoft, facing new competition from Research in Motion Ltd.'s BlackBerry and Apple Inc.'s iPhone, is working with sellers of its Windows Mobile phones to cut prices below $100.

AT&T Inc. began offering the 3125 Windows Mobile model for $49.99. Another phone will go on sale for less than $100 next month, Microsoft said, declining to name the company selling the device.

Microsoft competes with Apple, Research in Motion and Symbian Ltd. in developing phones that handle e-mail and surf the Internet. More consumers are buying such devices, so-called smart phones, which had been the domain of corporate customers. As competition grows, Microsoft is cutting prices to appeal to a broader range of shoppers.