Microsoft looking at iPhone competitor

*crickets*

Sounds like the Zune vs. IPod attempt. Problem/Challenge with IPhone is the -software- not so much hardware. There's alot more superior hardware phones out there, problem is they run Windows Mobile/Symbian/RiM with all kinds of horrible user design flaws.

said Microsoft is involved in the design of the phone's software and hardware but a third-party was expected to make the handset.

Unless Microsoft actually do very big re-design of Windows Mobile [or whatever they mean with "design the software"], this phone will go totally unnoticed between all the existing Windows Mobile devices...... I also can't imagine Microsoft foregoing Windows Mobile by writing some exclusive OS for this phone only, it'll be WM 6.5 / 7.0 otherwise they're kinda limiting their royalties..
 
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May that idea contract terminal Swine Flu!
Such phone is likely to spend most of your time connecting to M$ to download patches and "hot" fixes for various vulnerabilities - including the owner's vulnerability of becoming nuts and getting driven down a never ending spending spiral.
Bad idea.
 
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