The rumored Microsoft phone could include Nvidia's Tegra processor and Qualcomm's telecommunications baseband chip, according to Doug Freedman, a researcher at Broadpoint AmTech.

"We believe the HTC ramp in '09 is the more material of the two, as we have some concerns on the channel for Microsoft's handset distribution, given the lack of prior carrier relationships/handset qualification history," Freedman wrote in a report Thursday. "It could turn out to be ... a reference design Microsoft has used. That could be possible. But we've also picked up that Microsoft is working on a phone themselves."

Microsoft Denies Rumors

Neither Nvidia nor Qualcomm was immediately available for comment, but Microsoft has moved to squash the rumors. According to Scott Rockfeld, Microsoft's director of Windows Mobile, the company has no plans to make a phone.

"Our core focus has been and will continue to be providing software plus services and working with our partners to deliver great phones. Our partners have been integral in our success to date, and we are excited about the innovation we are bringing to the market together," he said. "We continue to collaborate with Nvidia on the delivery of innovative solutions that move the smartphone industry and the consumer experience forward."

Still, Freedman seems to know something others don't. He said a phone could turn up within the next six months. Although there's plenty of room in the market for additional phones, Michael Gartenberg, an independent technology analyst, insists the speculation about a Microsoft phone is off base.

"The last thing Microsoft wants to do at this point is to alienate all of its partners in the mobile space by getting into the device business," Gartenberg argued. "It's not in Microsoft's best interest to do that, and it would be a very unlikely move."

An Undeniable Fact?

What Microsoft hasn't denied is a new online synchronization service for Windows Mobile called My Phone. The service appears to be akin to Apple's MobileMe. Although the Web site isn't complete, a blurb on GetSkyBox.com offers some information direct from Redmond.

"Microsoft My Phone syncs information on your mobile phone to a storage space on a Web site hosted by Microsoft," it says. "If your phone is lost or stolen, or if you upgrade to a new phone, you can easily restore the contacts, calendar appointments, photos and other information that you stored on My Phone to a compatible new or replacement phone."

"Microsoft My Phone enables you to view and manage phone information by using a Web browser," it adds. "In your Web account, you can add, edit and delete contacts and calendar appointments, and the changes will appear on your phone the next time that you sync."

Gartenberg couldn't confirm the service, but said he expects to see Microsoft building out additional mobile services that tie into Windows Mobile.

"Building out Windows Mobile services makes a lot of sense," he said. "But building s smartphone is the surest way to frustrate licensees. For people that point to the iPhone, Apple is not Microsoft and Microsoft is not Apple."