Microsoft to make its own telephone

The dark satanic rumour mill has manufactured a hell on earth rumour that Microsoft is about to make its own mobile to kickstart sales of its Windows mobile software.

The sauce of the rumours is a Nomura analyst, Rick Sherlund, who wrote a note to his customers yesterday.

If Sherlund is right, and Vole is saying nothing, then Microsoft may be working with a contract manufacturer to develop its own handset for Windows Phone 8.

The rumour seems to be based on the idea that since Microsoft announced it was making its own hardware tablet, then that will follow on to smartphones.

Sherlund said he did not know if this would be a reference platform or whether this may be a go-to market Microsoft-branded handset.

Sherlund does know his stuff, he covered Microsoft for Goldmine Sex when the bank brought Microsoft public in 1986.

But his comment seems to ignore some fairly important “other things,” namely the company’s $1 billion investment in Nokia.

Nokia should provide Vole with all the mobile marketing push it can eat. If it doesn’t, and the company goes under, then it is unlikely the fact that Microsoft’s own hardware will do much better. Besides there are better rumours out there which suggest Microsoft might even buy Nokia if the outfit goes tits up. All it has to do is wait until the company starts to run out of cash so its value has dropped a bit more.

Sid Parakh, an analyst at fund firm McAdams Wright Ragen told Reuters that Microsoft has little to lose by trying its own handset on the market.

But he thinks that of Vole wanted to be in the handset business, it would be better off buying Nokia, suggested Parakh, although he said that was unlikely.

This is because such a move would bring Microsoft into competition with suppliers like Samsung, HTC Corp, ZTE and Huawei, which are slated to bring out new Windows phones later this year.

It is unlikely that Microsoft has forgotten the fact that its Kin phone did very badly, even if it was, by all accounts, pretty Kin good.