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Microsoft Said to Plan Phone If Partner Approach Falters

Microsoft Corp. is making plans for the possible creation of its own mobile phone to help it gain share in the market for handheld devices, according to people with knowledge of the company’s plans.

The company is considering building mobile hardware as a back up, in the event that its current approach of providing software to handset makers such as Nokia Oyj and HTC Corp. falters, said the people, who requested anonymity because the plans are private. Microsoft is for now confident that its current strategy will succeed, the people said.