The FonePlus device, shown off here by Chief Research and Strategy Officer Craig Mundie, stems from discussions that began at the World Economic Forum in January. To create the computer, Microsoft combined its Windows CE operating system with a phone that could then be connected to a television display and a keyboard.
"Many people, including us, have been looking at different ways to lower the cost" of computing, Mundie said. "Clearly one of the things that is just booming globally is the use of the cell phone." More details at ZD Net.
Microsoft presents cell phone-PC prototype

Microsoft has shown a prototype of a cell phone-based computer for emerging markets.