Microsoft May Be Planning Own Phone, Nomura’s Sherlund Says

Microsoft Corp. may be developing its own Windows Phone handsets, departing from its current practice of working only with partners like Nokia Oyj, according to Rick Sherlund, an analyst at Nomura Holdings Inc.

The company may be collaborating with a contract manufacturer to build a phone, Sherlund wrote in a note today, citing industry sources. Sherlund, who recommends buying the shares, said he wasn’t sure if the device would be a reference design for other companies to use as an example for Windows Phone products, or a Microsoft-branded phone for consumers.