It becomes somewhat of a philosophical debate on whether the consumer is best served when a company controls only phone software (Microsoft) and allows hardware partners to build devices thus increasing choice, or when a company controls both the phone hardware and software (Apple) and controls the entire experience thus limiting choice.

For many months the mobile phone community has been speculating on whether Microsoft would be making their own phone. After the Danger acquisition and the formation of the Microsoft Premium Mobile Experiences division, it made sense that Microsoft would make a Windows Mobile super phone that would act almost as a model for their hardware partners to follow.

In a recent interview with TechCrunch, Ballmer once again squashes the rumor that Microsoft is working on their own phone. Ballmer makes it clear that Microsoft’s chief prerogative is to sell as many licenses of Windows Mobile as possible…it’s ALL about volume for them, and that when a single company controls both the hardware and software, it’s nearly impossible to have a massive amount of sales volume. To see the video, hit the jump and fast forward to about 9:15.