You may be wondering what happened to Microsoft's ambitions in the mobile space. The company has been creating a lot of hardware lately, but it's focused on its Surface-branded line of devices running 'full' Windows. A new Windows Mobile handset hasn't been in the rumors for quite some time now. That changes today, because a new unconfirmed report now claims that Microsoft is testing just such a device. The revelation apparently comes from two different sources inside the company, so it may be accurate. The bad news? The phone is said to be running a "different" branch of Windows...
Source: http://www.gsmarena.com/microsoft_is_reportedly_testing_a_new_phone_running_a_new_branch_of_windows_mobile-news-25319.php