Nokia has now acknowledged that Microsoft could be building its own smartphone. A filling by Nokia reads, “Microsoft may make strategic decisions or changes that may be detrimental to us. For example, in addition to the Surface tablet, Microsoft may broaden its strategy to sell other mobile devices under its own brand, including smartphones. This could lead Microsoft to focus more on their own devices and less on mobile devices of other manufacturers that operate on the Windows Phone platform, including Nokia.”

Nokia also have reservations about Microsoft’s future investment in Windows Phone. Nokia states, “If Microsoft reduces investment in that operating system or discontinues it, our smartphone strategy would be directly negatively affected by such acts.”

We were already getting rumors about Microsoft working on its Surface phone and these words from Nokia more or less confirm Microsoft’s plans of a Surface phone.