However, it looks as though they're potentially still in the running of crafting a device for the new platform. Based on a report posted by German magazine c't, they said that “Toshiba showed the TG-02 and K-01 in February running Windows Mobile 6.5. It is possible that we will see them now (aka at the IFA) as the first Windows Phone 7 devices.”
Naturally those two devices mentioned are more than equipped in handling the rigorous requirements of WP7, but of course, there are going to be some minor adjustments required – such as the camera and buttons. It's still difficult to say whether or not Toshiba will be on-board soon with an offering, but we're sure there are people out there waiting to see something come out from the manufacturer.