
Katherine Egbert, an analyst with the firm says: "Our recent industry checks indicate Microsoft will be debuting its own phone sometime in the next two months."
The phone will be designed to look and feel like the Zune HD media player, and will work on a hybrid operating system of Windows Mobile 7 and that of the Danger Sidekick smartphone.
5MP camera will be standard, and the phone should support 720p video, says the note. The phone will also have close integration with the Zune Store, making downloads of music and movies easy.