The US based firm has already been involved in testing a design for its own phone
Microsoft’s CEO Steve Ballmer hints at developing its own hardware, competing directly with its other hardware partners.
The move could also signal Microsoft-branded phone after launching Surface tablet last month.
Steve Ballmer was quoted by Reuters as saying that he anticipates that the firm’s partners will build the lion’s share of all Windows devices over the next five years.
"With that said, it is absolutely clear that there is an innovation opportunity on the scene between hardware and software and that is a scene that must not go unexploited at all by Microsoft," Ballmer said.
According to reports, the US based firm has already been involved in testing a design for its own phone.
The firm’s move follows launch of the Surface RT tablet and following a speculation revealing that the software maker would build its own branded smartphone, with the software giant’s collaboration with Nokia apart.
Ballmer is also planning to modify Microsoft following the departure of its Windows and Windows Live Division president Steven Sinofsky, which is claimed to be his first step in modernising the firm in a bid to take on Apple and Google.
Recently, Microsoft had announced Surface, a new line of tablet PCs, powered by company’s Windows 8 operating system, and its first foray into computer manufacturing since the 80s.
Microsoft is reported to be working on its own smartphone design and working with Asian suppliers, in a bid to take plunge into smartphone market.