Microsoft and Apple square up in phone battle

The handset wars reshaping the technology and mobile industries are set for another twist in the coming days, as both Microsoft and Apple prepare to unveil important new products.

Microsoft's announcement, scheduled for next Monday, will involve the first handsets in which the software company has had a close involvement in the overall design and user experience. Microsoft's new handsets mark a departure from its traditional practice of confining itself to building a mobile operating system - a stand-off approach that senior executives have conceded leads to less compelling products than those built entirely by one company, such as Apple's iPhone.

Meanwhile, Apple is to show off a new version of the iPhone software this Thursday, paving the way for an expected launch this summer of a fourth generation of the hit smartphone. Apple watchers expect the latest software update to introduce full multi-tasking, overcoming a main shortcoming of the device. Multi-tasking could also help the iPad, which uses the same operating system, improving productivity in a device that aims to be an alternative to a netbook.