"Microsoft Corp. is working with component suppliers in Asia to test its own smartphone design, people familiar with the situation said, suggesting the computer-software giant is increasingly adopting a variation of a business model favored by rival Apple Inc., which designs computers and phones along with the software that powers them.Microsoft Tests Smartphone With Asia Suppliers - WSJ.com
Officials at some of Microsoft's parts suppliers, who declined to be named, said the Redmond, Wash.-based company is testing a smartphone design but isn't sure if a product will go into mass production."
Friday, November 02, 2012
Microsoft Tests Smartphone With Asia Suppliers - WSJ.com
This would be consistent with rumors that Microsoft built its own super-sized Chinese factory for Surface and other device types