Microsoft kills the Zune phone rumors

It was just a week ago when the Zune phone rumors looked to be true, as a Wall Street analyst of Jeffries and Co. said that Microsoft was likely to introduce the their own phone, which would be Zune-based, sometime over the next few months....either at the Mobile World Conference or CTIA in Vegas. Then things really started to get interesting when the newest Zune software update was released, and the code had references to three phone device drivers. With all this speculation going on, Microsoft has now went on record with Neowin saying "we have no plans to create a Zune phone." However, it appears that the Zune experience will be ported over to Windows Mobile 7, and not to have it's own specific Microsoft-branded phone. But even with Microsoft saying that there isn't going to be a Zune phone, we're sure the rumors will continue.

source: Neowin