Rumor: Microsoft Working on Surface Phone Too
A Microsoft Surface smartphone may be in the works as well, hitting store shelves in the first half of 2013.
It only seems logical that Microsoft would consider launching its own Windows Phone 8 smartphone given that the company is jumping into the tablet sector feet first with its own Windows 8-powered Surface. Like the desktop/tablet OS launching later this month (yep it's October already), the next-generation mobile OS is a big step, one that likely needs to be taken correctly so that the entire multi-platform vision – one of Microsoft’s biggest selling points – won't collapse.
The latest news circulating in the Microsoft rumor mill is that the Redmond company plans to release its own Windows Phone 8, Surface-labeled smartphone in the coming months. The manufacturer behind the supposed device shouldn't be much of a surprise – Nokia – but there's also indication that Samsung may be a possible candidate as well. Both are currently high-profile Windows Phone 8 partners.
An unnamed source told BGR that like the Surface tablets, Microsoft has been quietly working on the Surface smartphone for a while. It will reportedly compete directly with high-end smartphones like Apple's iPhone 5 and Samsung's Galaxy S III, as well as Windows Phone 8 smartphones released by its partners. The handset is currently in the late stages of development, the sources said.
A report published by China Times backs up the rumors regarding the phone's "Surface" branding, and even states that the device will hit the market in the first half of 2013. An additional unnamed source agreed, reporting that Microsoft has no plans to release its own Surface smartphone during the first round of Windows Phone 8 device launches.
Releasing a Surface phone in the first half of 2013 would make sense, even more so next June. Microsoft is expected to launch the next Xbox during E3 2013 next summer, the final piece in Microsoft's Windows 8 multi-screen puzzle. It wouldn't be surprising to see Microsoft implement Surface-specific connectivity features into the next-generation console to help drive huge sales on all four Windows 8-based screens (desktop, tablet, smartphone, console) by the end 2013.

How about rounding the edges to make it visually more appealing ?
Oh yes, can't do that without paying royalties to Apple :-)
And wouldn't it be nice if phones were like PCs? So I can get whatever hardware I want and install whatever software I like. That will never happen with Samsung/Apple at the helm (especially the latter). Perhaps MS will surprise us and give us a truly open experience.
lolwut?
Trolling aside, though, it had damn well better be Nokia they're partnering with after all the support Nokia has shown them. Just saying.
I find it strange that I was stoked about the idea of MS coming out with their own tablets, and yet I feel a lot more hesitant about them being capable of making a decent phone. I wonder why that is?
Is it really considered support when all of the upper management use to work for MS?
Android has perfected the drag down notification system, that it's the single most used feature on my phone. WP8 needs to have it before I can be converted.
Nope webOS perfected notifications. Not sure why Andriod has not included all of webOS's design cues yet. Probably integrity on Matis's part.
MS does write Nokia a big check every now and then for that support. Two way street.
i dont know about you guys but when i read this, the four words that came to mind were: "The Empire Strikes Back"...
The idea with the live tiles is that you don't need to use a drag down menu - you get all of the notifications on the app tiles themselves. I agree that it does need to be tweaked in order to be a bit more readable (if you have more than one email, it just shows the # of emails), and usable when you're inside an app and not on a homescreen.
I'm hoping Verizon gets a decent selection of devices. Looks like HTC is the only OEM with a WP8 device on board right now, but I'd love to compare it to a Nokia. Luckily all of the announced devices have roughly the same hardware, so you're not necessarily getting cheated.
http://gigaom.com/2012/10/02/nokias-elop-we-can-do-things-with-windows-phone-that-microsoft-cant/
In that case it's a 50% chance they are advertising the Surface Tablet