Microsoft's Ballmer hints at iPod-like phone

Amid the plethora of rumors surrounding the potential of an iPod phone, Microsoft CEO Steve Ballmer hinted in a recent interview that his company is looking into the possibility of creating its own Apple iPod like device and combining it with a mobile phone. When asked whether he thought Microsoft could crack the iPod market, Ballmer responded: "It's going to take an innovative proposition. In five 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." By the way, neither Ballmer nor his children own an iPod.

To read more about Microsoft's moves to counter iPod:
- check out this report from FORTUNE
take a look at this piece from TeleClick