Microsoft seems set to take on Apple’s iPhone.

Leaks suggest a Microsoft “Zune phone" will be unveiled by CEO Steve Ballmer at his keynote address to kick off the giant CES trade show in Las Vegas, January 8.

Previously, Microsoft's CES keynote has always been delivered by the now-retired Bill Gates. So one way or another Mr Ballmer will be looking to make a splash during his first outing at the world's largest IT and consumer electronics show.