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Microsoft CEO denies cellphone plans

Microsoft Corp has no plans to create a cellphone, preferring to focus on expanding its share of the market for cellphone software, chief executive Steve Ballmer said on Wednesday.

"I don't actually think it will make sense for us to make a cellphone," Ballmer said, speaking at the Wall Street Journal's "D: All Things Digital" conference in Carlsbad, California.

Though he conceded he had once said the same thing about creating a music player, Ballmer said the better strategy for Microsoft is to partner with major handset makers.

"There will be an operating system that sits in every phone," he said. "Will they come from us or someone else?"

Apple Inc is expected to introduce its cellphone, the iPhone, soon.

Ballmer said the company "is very committed" to its music player, the Zune. The device launched in November, but has so far failed to make much of dent in Apple's domination of the market for digital music players.

Ballmer said the company will expand the Zune line, which he characterized as bare-bones, in an effort to get into the market quickly.

"We'll have a lineup this Christmas that will be more exciting," he said.
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