Is the world's biggest software maker looking to be the next smartphone maker?

An analyst report released yesterday by Broadpoint AmTech predicts Microsoft will debut its first-ever smartphone at the annual World Congress that kicks off Feb. 16 in Barcelona.

The report said a Microsoft smartphone will use graphics chipmaker nVidia's Tegra line of multi-core chips, which is also used in devices by handset maker HTC.

"We believe Microsoft may announce one of the new phones at 3GSM," the report said. "We have some concerns on the channel for Microsoft's handset distribution given the lack of prior carrier relationships and handset qualification history."

Microsoft and nVidia did not respond to calls by press time. A spokesperson from Broadpoint declined to comment further on the report.

It's unclear precisely what the Redmond software colossus has up its sleeve for 3GSM, having kept quiet on much of its upcoming mobile plans. Late last year, Scott Rockfeld, Microsoft's director for Windows Mobile devices, told InternetNews.com that the company plans to make a major Windows Mobile platform announcement by March, but did not provide further hints on the news.

The Broadpoint study comes as a wave of new hardware players, including second- and third-place PC makers Dell and Acer, ready their own smartphone launches this year. At the same time, Microsoft is facing mounting threats to its share in the mobile software space, courtesy of new efforts by Google and Nokia.

There are still reasons to doubt that Microsoft is truly joining Dell and Acer in launching its own smartphones, however. Instead, it could merely showing off a reference model used to help direct and standardize partners' efforts in Windows-centric mobile development.

That strategy would be in keeping with earlier moves. At an earlier 3GSM World Congress in 2003, the company demonstrated a reference platform of a smartphone designed with Intel as its chip partner.

In a reference platform, a company like Microsoft sinks its own R&D efforts into designing a workable demonstration product. That encourages hardware partners to support the design, which in turn helps spread Microsoft's software. For instance, following 2003's unveiling of Microsoft's smartphone reference platform, a handful of device manufacturers announced plans to launch their own takes on the design.

Rockfeld's planned announcement also could relate to an enhancement to Windows Mobile, which is rumored to be close to seeing an incremental upgrade from 6.1 to 6.5. It may also be news relating to the long-rumored release of Windows Mobile 7. Earlier this week, Motorola Co-CEO Sanjay Jha said during his company's earnings call that Windows Mobile 7 would be on track for release in 2010.

In any case, if Broadpoint's report is accurate, it could mean a big vote of confidence for nVidia, which has been steadily expanding in wireless handsets to capitalize on booming demand for increasingly advanced smartphones.

See here for Page 2 of this article -- What's in it for Microsoft? -- at InterenetNews.com.