Microsoft Reaffirms That It Is Not Interested In Making Phones
Apr 29, 2009, 7:17 AM by Eric M. Zeman
In the wake of reports about a new, Microsoft-manufactured phone or device for Verizon Wireless dubbed the "Pink", Microsoft made clear its business regarding mobile devices. Spokesperson John Starkweather said, "Microsoft is not going into the phone hardware business. Microsoft is not building a Zune-specific phone. We're deepening our relationships with our hardware partners in order to create even better performing phones that are competitively priced, have the features people want, that are easy-to-use and just downright lust-worthy. The upcoming availability of Windows Mobile 6.5 software will enable our OEM partners to build even more compelling devices in a wide-range of form factors for customers around the world." Microsoft has said in the past that its business model is to create and license the mobile operating system, not develop hardware. This latest statement confirms that strategy.
source: Microsoft
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Apple Denied Iphone Rumors
They'll build the OS, then license it to hardware vendors like HTC.