The idea that Microsoft may be making their own phone doesn't sound so silly. They've already put their brand name on many low-end products such as keyboards, mice and Webcams, which are in general of above average quality when compared with similar products made by their competitors (I have many issues with Logitech products).
But making a phone involves an entirely different level of complexity, one that has already been highly mastered by many other companies, especially Samsung which is extremely successful at manufacturing and launching varying lines of phones, from feature (i.e. "dumb") phones to highly advanced smartphones.
Partnering with Nokia seems to have been a bit of a mistake. Nokia is a company that has made the all-too-classic mistake of sitting on their laurels for way too long, and has rendered themselves obsolete.--
Watch my future television channel's public test broadcast!