Microsoft seems to be hoping to use its mobile operating system to take on Apple and develop a mobile phone iPod competitior.

In an interview with Steve Ballmer in Fortune Magazine the CEO of Microsoft was quoted as saying:

"In 5 years are people really going to carry two devices? One device that is their communication device, one device that is music? There's going to be a lot of opportunities to get back in that game. We want to be in that game. Expect to see announcements from us in that area in the next 12 months."

If Microsoft does intend to take on the market leader they will certainly have a job on their hands, Apple currently commands over 80% of the market, and rumours are rife that the company will have its own iPod based mobile phone on the market within the next 12 months to improve on the rather lacklustre Motorola iTunes offering currently available.

We will keep you posted.