According to the Wall Street Journal, officials at some of Microsoft’s parts suppliers have revealed that Microsoft is working with component suppliers in Asia to test its own smartphone suggesting that the company is following in the footsteps of Apple Inc. by developing the devices and the software they are powered by.

Rumours about the possibility of Microsoft launching its own branded smartphone have been circulating for some time most notably since the company unveiled it own branded tablet, the Surface. In addition to the Surface, the pricing of which was recently confirmed, Microsoft produces the Xbox videogame consoles.

However, it is still unclear if any such device will go into mass production.

Microsoft Corp. CEO, Steve Ballmer, has yet to reveal any details about the prospect of a branded smartphone, telling the Wall Street Journal that ”We’re quite happy this holiday [season] going to market hard with Nokia, Samsung and HTC. Whether we had a plan to do something different or we didn’t have a plan I wouldn’t comment in any dimension.”

Two weeks ago during a conference call Stephen Elop, CEO of Nokia Corp., reportedly said that he would welcome a Microsoft-made phone because he believed it would be a “stimulant” to sales for all companies making Windows Phone devices.