Microsoft to Launch own Branded Smart Phone?

Microsoft Corp. reportedly is working with component suppliers in Asia on its own smart phone design, WSJ.com reports. That doesn't absolutely mean Microsoft will break with its past business model and compete with its own original equipment manufacturers, but it is possible that will happen. As Google raised concern after it acquired Motorola, and released its "hero" Nexus device, so Microsoft got more scrutiny after it entered the tablet market with its own branded device.

A branded Microsoft smart phone would break radically with Microsoft's past practices and create channel conflict in a new way with its licensees. It is one more example of the perceived power of Apple's "closed" and integrated model of bundling software and hardware. 

Of course, Microsoft has been drifting in Apple's direction for some time, making its own game players (Xbox).