While rumors of a “Microsoft Phone” have run rampant for weeks, this report re-affirms, with the new specifics, that something is in the works. Microsoft is working with Asian suppliers to test its own smartphone design, reports Wall Street Journal quoting anonymous sources at the company and others who have been briefed on Microsoft’s Phone plans.

The sources said the company is adopting Apple-like business culture which designs phones along with the software that powers them. Currently, Microsoft ships its mobile OS to partner devices from Nokia, Samsung, HTC Corp and Huawei. Few Microsoft’s parts suppliers said the company is testing a smartphone design but may not go into mass production.

According to one person, Microsoft’s smartphone display screen measures between four and five inches, which comes between the iPhone 5 and Galaxy S III phone display screen. Past reports have claimed Microsoft phone to feature high-end specifications like a fast dual-core processor, 1GB of RAM, and an 8MP rear camera.

When WSJ reporter reached out to Microsoft Chief Executive Steve Ballmer, he told:

“We’re quite happy this holiday [season] going to market hard with Nokia, Samsung and HTC,” said Mr. Ballmer, referring to companies making smartphones powered by Microsoft software. “Whether we had a plan to do something different or we didn’t have a plan I wouldn’t comment in any dimension.”

Smartphones running Windows Phone OS haven’t sold well in past two years, with Nokia recently reported that they sold just 2.9 million Lumia devices in Q3 2012. And, it’s unlikely that Microsoft’s own phone would pent-up the demand and spur sales.

Do you think Microsoft will turn things around in 2013?

Source: WSJ

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