Microsoft handset rumours resurface

Microsoft has dropped a hint that it’s soon to release a mobile phone on the market, intended to rival Apple's ubiquitous iPhone.

The rumours have surfaced once more as talk of a new design - codenamed Pink - is currently still in its design process. However, Microsoft reiterated that if one were to be manufactured, a third-party company would build it.

The news comes after Microsoft's realisation that it has lost major ground to Apple, with the introduction of the iPhone, and now Google with its Android OS, in spite of the fact that it lends its Windows Mobile OS to a slew of devices.

Microsoft is keen to generate a new buzz around the company for the upcoming release of Windows Mobile 6.5, which could feature in its brand phone- and also the new Windows Marketplace, which will offer a similar breadth of content to Apple's App Store.