Windows 8 OS is expected to release on 26 October this year
Microsoft is working on a plan to build its own mobile phone to promote its new Windows 8 operating system (OS).
The new smartphone will compete against Apple's iPhone 5 and Samsung's Galaxy S III and other phones operating on its own Windows platform.
A report by the China Times and WPCentral claimed that a device is already being tested at Microsoft's labs.
WPCentral claims that, "The only thing we do know is when compared to current WP8 hardware it's something unique."
According to WPCentral, a Windows Phone would be attractive to Microsoft in case the Windows Phone 8 launch does not go smooth and the currently revealed devices don't catch on.
The latest move may build on Microsoft's previously announced own tablet PC, known as the Surface, which will be powered by Windows 8 OS.
Microsoft's move to come with a new tablet drew flak from its partners, with some of them criticising the company openly alleging that the company is having its own cake and eating it too.
Microsoft has already indicated that it is brining Windows Phone 8 ( earlier codename Apollo) to catch up with Apple and Google's smartphone operating systems.
Microsoft has announced that the upcoming operating system, Windows 8 will come in three different versions.
Recently, Minecraft videogame creator Markus 'Notch' Persson had criticised Microsoft for its gaming strategy in its upcoming Winddows 8 OS, saying that the software major is ruining its gaming ecosystem.
In September this year, Intel CEO Paul Otellini told employees in Taiwan that Microsoft is releasing Windows 8 OS before it is fully ready.
The launch of Microsoft's Windows 8 OS would be a potentially risky gamble which the software giant must take to stay relevant in a market dominated by Apple's iOS and Google's Android, according to Gartner.
Microsoft is planning to release Windows 8 OS on 26 October 2012.