Microsoft

Microsoft dreams of conquering the phone business, but it knows that 'pink' is just one hue in a very broad palette.

The leaked photos that emerged on Gizmodo on Wednesday, while genuine, paint just one part of the picture of how Microsoft hopes to get back into the phone game.

According to sources familiar with the company's plans, the designs shown on Gizmodo are are more the evolution of the Sidekick than they are an effort to take on the mass market or even Apple's iPhone. The devices themselves won't be built by Microsoft itself and are unlikely to arrive before next year, the sources said. A Microsoft representative declined to comment on the Gizmodo report.

(Credit: Gizmodo)

Microsoft has been working for years now on plans to revitalize its phone business after ceding ground to Apple, Research In Motion, and others. The software maker has been working on a major overhaul of its operating system--Windows Mobile 7, which was supposed to be in phone makers' hands by early this year but has suffered a number of delays.

The new devices draw heavily on the company's 2008 acquisition of Danger, the maker of the T-Mobile Sidekick. Although they use Windows Mobile at their core, they are geared at the same kind of consumer who bought a Sidekick--one who is heavily into social networks, instant messaging, and other online services.

Microsoft is counting on Danger for more than just its cachet with teens and young adults, though. Danger also specialized in delivering much of its technology via services. Indeed, the Sidekick evolved as a device where nearly all of the data lived in the cloud as opposed to being managed by the phone itself.

That will be an important component of Microsoft's phone push, even beyond the range of these devices.

In outlining the future of its phone strategy, Microsoft is trying to keep the breadth of its existing Windows Mobile ecosystem, while at the same time developing a few, closer partnerships that could yield more worthy rivals to the most popular handsets.

Microsoft has signed deals with a few phone makers, such as LG, that are expected to offer Windows Phones designed more closely with Microsoft.

However, this project appears to be in addition to that effort, expanding on the legacy of the Sidekick. Sources wouldn't provide any exact timing, but I'd think about a year or so, given what I have heard. That also appears to be the current timing for Windows Mobile 7.

For this year, Microsoft is focused on a more modest evolution of Windows Mobile--Windows Mobile 6.5--as well as efforts to re-brand products using its operating system as Windows Phones.

Microsoft also continues to shift executives and other resources to strengthen its phone efforts.

Former server executive Andy Lees now runs the phone business, while former Mac Business unit chief Roz Ho heads a "premium mobile experiences" team responsible for some of the Pink work. The software maker has also tapped folks from its Tellme unit to help bring improved voice recognition capability into Windows Mobile.

In a July interview with CNET News, Entertainment and Devices unit president Robbie Bach acknowledged that Microsoft also just needs to pick up the pace.

"If your point is we haven't advanced Windows Mobile as fast as we like, I think the answer is that's true," Bach said. "You are going to see that change."

Microsoft does indeed have a dual-screen tablet code-named Courier, and it may not be the only gadget that the software maker has up its sleeves.

Earlier on Tuesday, Gizmodo revealed photos and a video of Courier--showing it to be a dual-screen tablet with both pen input and multitouch capabilities. Earlier this week, ZDNet's Mary Jo Foley also reported that Microsoft was taking another swing at the tablet PC concept.

(Credit: Gizmodo)

My sources say it's legit, but I'm hearing that it's just one of several prototypes that has been cooked up as part of a skunkworks project being led by executive J. Allard and a small team of 'Softies.

Microsoft has been trying to keep Allard's work under wraps--even locating Allard's team well away from the rest of Microsoft's main Redmond campus. Until it was shown by Gizmodo, not only was Courier's existence a surprise to many outside Redmond, few inside the company were aware of it either.

Whether Courier--or any of its still-secret brethren--actually come to market is still yet to be determined, I'm hearing. That said, the tablet PC is a long-held dream of founder and Chairman Bill Gates, who said that he hoped the device would continue to evolve even after he stepped away from full-time work at the company.

Photos: The new Microsoft tablet

And, with Apple rumored to be doing its own tablet, it would seem that Microsoft would hate to have wasted a decade tinkering with the concept only to cede the mass market to Apple.

For its part, Microsoft chalked Courier up to rumor and speculation and declined comment.

(Credit: Gizmodo)

It feels like the whole world is holding its breath for the Apple tablet. But maybe we've all been dreaming about the wrong device. This is Courier, Microsoft's astonishing take on the tablet.

Courier is a real device, and we've heard that it's in the "late prototype" stage of development. It's not a tablet, it's a booklet. The dual 7-inch (or so) screens are multitouch, and designed for writing, flicking, and drawing with a stylus, in addition to fingers. They're connected by a hinge that holds a single iPhone-esque home button. Statuses, like wireless signal and battery life, are displayed along the rim of one of the screens. On the back cover is a camera, and it might charge through an inductive pad, like the Palm Touchstone charging dock for Pre.

Photos: The new Microsoft tablet

Until recently, it was a skunkworks project deep inside Microsoft, only known to the few engineers and executives working on it--Microsoft's brightest, like Entertainment & Devices tech chief and user-experience wizard J. Allard, who's spearheading the project. Currently, Courier appears to be at a stage where Microsoft is developing the user experience and showing design concepts to outside agencies.

Microsoft has a history of collaborating with other firms, especially in the E&D division: Zune and Xbox have both gone through similar design processes. (And plans for the Microsoft Store leaked through a third-party agency were confirmed as genuine prototype layouts and concepts.) This video is branded Pioneer Studios, a Microsoft division within E&D that specializes in this kind of work, working with another agency that's a longtime Microsoft collaborator on confidential projects.

The Courier user experience presented here is almost the exact opposite of what everyone expects the Apple tablet to be, a kung fu eagle claw to Apple's tiger style. It's complex: two screens, a mashup of a pen-dominated interface with several types of multitouch finger gestures, and multiple graphically complex themes, modes and applications. (Our favorite UI bit? The hinge doubles as a "pocket" to hold items you want move from one page to another.) Microsoft's tablet heritage is digital ink-oriented, and this interface, while unlike anything we've seen before, clearly draws from that, its work with the Surface touch computer and even the Zune HD.

Over the next couple days Gizmodo will be diving much, much deeper into Courier, so stay tuned.

This story originally appeared on Gizmodo.

Photos: The new Microsoft tablet