Microsoft testing its own smartphone with Asian suppliers: Report

Microsoft along with component suppliers in Asia is testing a smartphone based on its own design, according to a report in Wall Street Journal. Whether the product under test will go into mass production is something that officials at Microsoft’s parts suppliers are not confirming. The device is said to have a screen size between 4 and 5 inches according to sources.

It may be recalled that on the eve of the launch of Windows 8, Steve Ballmer had told BBC that they will be doing more hardware.

It will be interesting to see if Microsoft pulls this off. The announcement of Surface had taken everyone by surprise earlier this year, as Microsoft isn’t really known to come out with the hardware, the Xbox being the only exception to the rule. Microsoft had launched the Kin smartphone in May 2010 (which was manufactured by Sharp Corporation), but it was killed by mid-July 2010 citing low sales as a reason.

HTC, Nokia and Samsung are currently the only manufacturers with a Windows Phone 8 OS and most of the specifications are dictated by Microsoft. It does not seem likely that a Microsoft designed phone will come anytime this year – but next year seems a distinct possibility.

What will be even more interesting is how the other vendors will react and how it will affect them, especially Nokia. HTC and Samsung still have a healthy portfolio of Android OS-based phones, so they are not as dependent on the Windows Phone ecosystem as is Nokia. Also would it really be in Microsoft’s interest to come out with its own phone, when other vendors are producing really high-end phones with stock OS experience? What do you think? Let us know in the comments.