Microsoft to launch own Windows Phone 7 Series handset early next year

When Microsoft showed off its upcoming Windows Phone 7 Series OS at the Mobile World Congress in Barcelona recently, it did so on handsets specially constructed by Asus. However, the official line was that the units would not be released commercially.

Now, one analyst believes that Microsoft will indeed be partnering with Asus to develop an official Microsoft handset, though early development issues will result in a delayed release some time in early 2011.

Northeast Securities analyst Ashok Kumar (the chap who broke the first details on Google’s Nexus One) claims to have spoken to Microsoft's suppliers and design partners, who have revealed that the rumoured unit is very much a reality.

According to Kumar, production on the phone has temporarily halted for reasons unspecified, although he speculates that it may be to do with issues relating to Windows Phone 7 Series itself.

If true, this could have a knock-on effect for any other handset manufacturer looking to jump on the WP7 bandwagon, and would likely scupper Microsoft’s intended Christmas 2010 release window.