Just as the battle between Apple and Google heats up in the mobile sector, Microsoft has gone and cancelled plans to launch its "Kin" phones outside of the US later this year.

"We will continue to work with Verizon in the US to sell current Kin phones," Microsoft told Reuters.

The team that had been working on the portfolio will now be combined with the team working on Microsoft's upcoming Windows Phone 7 software.

Microsoft recently announced some major changes in its entertainment and devices division. The canning of its Kin range of phones looks to be another in the race to catch up to Apple and Google.