It’s now Microsoft’s turn to bring out its smartphone; well, that what an analyst at Broadpoint AmTech, Doug Freedman says. Microsoft may unveil its smartphone at the GSMA Mobile World Congress in two weeks, says Freedman.

There certainly is a hot rumor in the market that Microsoft is all set to launch its smartphone. Yet, Nobody, but Doug Freedman knows whether the news is true, or a mere rumor.

Freedman of San Francisco-based research firm, on Thursday, announced that Microsoft will use Nvidia's Tegra chip in its smartphone. He said that eventually the Nvidia ARM-based chip will be used Apple in a future iPhone. He stated that the Microsoft’s smart phone would be the second Nvidia Tegra design win after HTC.

Claiming that his information is not based on mere speculation, Freedman said, "It could turn out to be...a reference design Microsoft has used. That could be possible, but we've also picked up that Microsoft is working on a phone themselves.”

Supporting the Freedman’s report, Broadpoint AmTech analysts Rob Sanderson and Mark McKechnie said, “Multiple industry sources have clued them that Microsoft is gearing up to launch its own smartphone come the second half of this year.”

On the other side, Microsoft stated that it’s mere a market rumor. In “plain and simple” terms, Microsoft spokesperson said to The Wall Street Journal, "Microsoft is not doing a phone."

In a statement, Microsoft's director of Windows Mobile, Scott Rockfeld said, "Microsoft has no plans to make a phone and we have nothing to announce at this time. Our core focus has been and will continue to be providing software plus services and working with our partners to deliver great phones. Our partners have been integral in our success to date, and we are excited about the innovation we are bringing to the market together.”

He added, “We continue to collaborate with Nvidia on the delivery of innovative solutions that move the smartphone industry and the consumer experience forward.” Nvidia said it had no comment.

However, Freedman sounded very confident about his report. He said that Microsoft could bring out the phone in the next six months, and his report is based on the "supply chain that's working on the release of the product."