Microsoft CEO Steve Ballmer is in Singapore today to help promote the launch of Office 2010/Imagine Cup Awards Ceremony, nothing too surprising there.

Evidently Steve took some questions from the audience and on Windows Phone 7, he reportedly had this to say:

We're focused on putting Windows Phone 7 in phones, no plans for tablets.

With the cancellation of Courier, the uncertain future of HP's Slate and the likes of Bach and Allard leaving, what exactly is Microsoft's strategy for tablet computers going to be? We know WP7 can scale up to large resolutions and evidently has a robust enough DPI to handle a high-resolution tablet.

So was he just being cagey or legit? It's not like he would just announce a Windows Phone 7-Tablet initiative in such an offhand way. Then again, MS has made some boneheaded moves in the past, and not taking advantage of WP7 + tablets could be one of them.

Speaking of shakeups, regarding the latest to the E&D division, he also reportedly said (paraphrasing)

There will not be further changes in mobile and entertainment strategy after management shakeup

That's a relief. The whole web seems to be crackling with 'WP7 FAIL' predictions after yesterday's news.

Update: In a video interview with Fortune, Ballmer clearly states they are going with Windows 7 and not Windows Phone 7 for tablets. Can Windows 7 answer the craving for instant-on, low power, low heat and fast mobile OS that consumers demand?

[image via @hyperous]