Microsoft will develop software for the iPhone

I found this news on a Portuguese site, don't worry google translates it. Where does this place Microsofts position with Windows Mobile? Does this mean Microsoft is leaving Windows Mobile behide? The Iphone really shock the world. Nokia and Windows Mobile making finger touch screens. Carriers change there internet policies. Apps changing the way they act with the users. Sites also changing there interface for the Iphone. What will be next?