Microsoft said it has no plans to build its own Windows Phone device following rumours that it is in discussions with a contract manufacturer about developing a smartphone.

Nomura analyst Rick Sherlund published a note late last week stating the company wants to develop a device using its next-generation Windows Phone 8 OS, but Microsoft senior marketing manager Greg Sullivan has now denied this in an interview with InformationWeek.


The initial reports were unclear as to whether the device would be a reference device for Microsoft's partners and developers, or a smartphone that would be sold to consumers.

The rumour follows Microsoft’s unveiling of its Surface tablet computer last week.

If Microsoft was to build an own-brand smartphone, it would be following in the footsteps of Google which has released several Nexus devices with vendors such as HTC and Samsung. Apple meanwhile designs and builds both the hardware and software for the iPhone.

Although Windows Phone is currently being used by a number of handset vendors, Microsoft has forged a particularly tight collaboration with Nokia, something that a Microsoft-branded smartphone could bring into question.

Microsoft has invested heavily in the partnership, which has seen the Finnish company move its smartphone portfolio to Windows Phone in order to benefit from close integration of its hardware with the OS, and to offer a raft of exclusive features.

Microsoft has said it is working with Nokia to build Windows Phone 8 devices, as well as HTC, Samsung and Huawei.