Nearly at the Mobile World Congress 2009 and soon will find out what Microsoft has to announce, as Microsoft continually try to quash the rumours that they are developing a mobile phone.
But despite all the denials coming out of Microsoft these rumours persist, so unless Ballmers whips out a Microsoft Zunephones from his pocket during the MWC 2009 its probable safe to assume Microsoft is going to stay with the software side and not enter the hardware arena yet.
Although never say never as word has it Microsoft is re-branding Windows Mobile to be known as Windows Phone; just a name change so they are saying.
Source — Engadget