Nokia: Microsoft may make Surface phone

 

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By Nicole Kobie

Posted on 11 Mar 2013 at 09:47

Nokia has said Microsoft could make a Surface phone - and admitted that the move could hurt its own Lumia line of smartphones.

A Surface phone would follow Microsoft's foray into the hardware market with the Surface RT and Surface Pro tablets, and compete with Nokia's Windows Phone 8 handsets.

The possibility was suggested by Nokia in an SEC filing, in a section where it lists potential business risks.

"Microsoft may make strategic decisions or changes that may be detrimental to us," the document said. "For example, in addition to the Surface tablet, Microsoft may broaden its strategy to sell other mobile devices under its own brand, including smartphones."

"This could lead Microsoft to focus more on its own devices and less on mobile devices of other manufacturers that operate on the Windows Phone platform, including Nokia," it added.

The document doesn't mean that Nokia knows Microsoft is making its own handsets, only that it believes it's a possibility. It also suggested Microsoft may stop developing Windows Phone 8.

"Microsoft may act independently of us with respect to decisions and communications on that operating system, which may have a negative effect on us," Nokia said. "Moreover, if Microsoft reduces investment in that operating system or discontinues it, our smartphone strategy would be directly, negatively affected by such acts."