Microsoft smartphone rumours resurface

We reckon Microsoft will have some interesting news to share at this year's Mobile World Congress, which will make a change. Steve Ballmer himself will be there, and that's always good entertainment. But will one of the announcements be a Microsoft phone?

News.com has an interesting piece on an analyst's assertion that Microsoft has signed up to use Nvidia's ARM-based Tegra chip in a smartphone. Now, Microsoft doesn't make smartphones itself - it sticks the increasingly archaic Windows Mobile onto its partners' handsets. The piece has a firm denial from Redmond that it's considering going its own way, but perhaps this is the fabled zunePhone we're talking about here.

Let's assume that's the case - graphics would probably be great, but the OS would probably still leave a lot to be desired and Microsoft would really tick off its partners, such as HTC, who are already considering or producing the Android alternative.

Hmm. Maybe not such a good idea then.