iLounge reports that Microsoft is thinking about building its own iPhone applications, maybe even an iPhone version of Office. According to the article, Tom Gibbons, corporate VP of Microsoft's Specialized Devices and Applications Group, told Fortune that the software giant believes "it's really important for us to understand what we can bring to the iPhone."

The article points out that Microsoft's Mac business unit is one of the largest Mac development groups, excluding Apple, which puts it in a good position for creating iPhone apps.