An executive in Microsoft ’s amusement and game division Tuesday hinted that Microsoft may be developing its own rival to Apple ’s iPhone , based on Windows Mobile OS .

Speaking at Citi ’s annual Global Technology Conference in New York on Tuesday , Mindy Mount , corporate frailty Chief Executive and CFO for Microsoft ’s Entertainment and Devices Division , said it ’s not “ excessive ” to think that Microsoft will integrate photo , medicine and touchscreen feature into a Windows Mobile product in the future , though she declined to annotate on the specifics of when or what that might depend like .

Microsoft ’s mind with Windows Mobile has been to move every - day business capableness , such as accessing e - ring armor , from the microcomputer to the mobile gadget . However , most masses “ run to have one phone for personal as well as piece of work [ use ] , ” Mount enunciate . “ Being able to do pictures and music is something that consumers are go to want , so it ’s a natural thing for us to want in our product roadmap . ”

Microsoft is rumored to be evolve its Zune multimedia instrumentalist — its challenger to the iPod — with new characteristic out by the vacation time at the close of the year , though Mount decline to confirm this on Tuesday . But a intercrossed product melding Zune , which so far has had lacklustre response from consumer , with Windows Mobile feature film is not completely unrealistic for the future .

Microsoft has already worked with hardware partner to develop Windows Mobile handset with touchscreen capacity that are similar to the iPhone ’s . For example , the HTC tactual sensation from High Tech Computer is one of the latest Windows Mobile machine to pop the question users the power to use a touchscreen to scroll through e - chain armor and contacts and browse connection pages .

But the HTC Touch smartphone , which is available in the U.K. , Europe and Asia and should make its North American debut after this twelvemonth , does n’t have the type of multimedia system capableness that give the iPhone an edge over rival smartphones , at least in the forgetful term . Market inquiry firm iSuppli said Tuesday that in July , its first full month of exit , the iPhone outsold popular contender such as the Research in Motion Blackberry and Palm Treo gadget .

Much of RIM ’s success has been with the gadget fortune of its BlackBerry business , whereas Microsoft has been very successful with using third parties to build up its Windows Mobile devices , Mount said . The company sold 11 million Windows Mobile license last twelvemonth , and expects to do 20 million in the current financial year . “ We ’re pretty happy with that roadmap right now , ” she enjoin .

That roadmap so far does not admit Microsoft offering hardware for its Windows Mobile OS , which also mean if the company did release an iPhone challenger establish on Windows Mobile , it ’s unreadable whether it would be through a third company or from the company itself . Still , if the Xbox 360 , Zune and Milan table - top computer with touchscreen features the company previewed earlier this year are any indication , Microsoft seems to be warm up to the idea of offer consumer hardware devices alongside its traditional software , so an iPhone competitor from the seller is within the realm of possibility .