Microsoft has long been rumored to be considering its own "Surface Phone," but the company's head of Windows Phone doesn't see a need…yet. Speaking at AllThingsD's Dive Into Mobile conference today, Terry Myerson, corporate vice president of the Windows Phone Division, briefly discussed the possibility of a Microsoft phone. "It would have to be something where Nokia or HTC was not providing the consumer experience we think is possible with our platform," says Myerson. When pressed on whether Microsoft feels its partners are doing a good job, Myerson said he was happy so far, describing Nokia as "a great partner for Microsoft."

Surface Phone prototypes

Nokia has previously welcomed a potential Surface Phone, with CEO Stephen Elop describing it "a stimulant to the ecosystem." The Verge understands that Microsoft's Surface Phone has long been considered a "Plan B" designed for a possible scenario where manufacturers lose faith with Windows Phone. Sources familiar with Microsoft's Windows Phone plans have revealed that the company has recently been testing prototypes for a Surface Phone with the same magnesium casing found on the company's Surface tablets. Microsoft's hardware teams regularly prototype devices and create concept hardware, so this particular move doesn't mean that a Surface Phone has entered any further stages of development.

With Nokia starting to believe in the possibility of a Surface Phone, and Microsoft's continued focus on devices, Myerson also discussed rumors around a potential smartwatch from the company. "It's an exciting space," says Myerson. "There's no doubt that wearable computing has incredible potential." He refused to say whether the Surface team is working on a watch, asking the audience "how many people wear a watch?"