For a while there have been rumours circulating that software giant Microsoft is getting into the phone market.
However it seems that Microsoft might have set its sights a bit lower.
Microsoft and MediaTek have said that they are forming a strategic partnership to provide a multimedia-rich smartphone primarily aimed at emerging markets.
The kit will be built on the Windows Phone 6 platform. They will be multimedia-rich smartphones and will have full touch capabilities and offer advanced communication features.
MediaTek says its partnership with Microsoft will drive smartphone penetration in developing countries.
The move is interesting because it suggests that Microsoft is leaving the smartphone field in the West to Apple. Apple has been unable to get into the Chinese market and has not had much success in India. Redmond might be thinking that if it can sell enough of the gear to the cheaper markets it will not have to waste time and money chasing the Jobs' Mob marketing machine.