Microsoft today announced two of their first mobile device

Microsoft has introduced its first mobile phone with Microsoft’s trademark today in a move that aims to strengthen its presence in the mobile market. Both phones are part of the Microsoft portfolio is called the Pink Project and aimed at youth market.

But this phone will not use the operating system Winodws Phone 7 and will be sold at more competitive prices. This is done to stem the presence of the Apple iPhone and Google’s Nexus One.

Phone with a trade name Microsoft is going to be made by Sharp and sold through Verizon Wireless network in America. This device is intended as a replacement Sidekick smart phone devices made by Danger, the handset manufacturer was bought by Microsoft two years ago.

Analysts believe that this new phone will probably be a precursor to Microsoft’s portfolio under the brand names for products smartphne. This is an experiment for Microsoft, Morningstar analyst Toan Tran told Reuters. If this goes well or better than they expect, they may be more willing to dip their toes in the water and build the phone fully.

This is an important product for Microsoft, they have been doing very poorly in the smartphone market, said Jack Gold, head of research and technology consulting firm J. Gold Associates. They basically have to do something to get back into the market space.

Microsoft’s smartphone market share in the U.S. fell in Q1 from 19% to 15%. Currently in third place behind RIM and Apple, but analysts predict that Microsoft could have fallen into fourth place behind Google, if the software giant does not improve the game and change their marketing strategy.