Zune phone rumour resurfaces - code name 'Pink'

Those Zune phone rumours just refuse to go away. Firstly, there was the whole is there, isn't there surrounding whether there's going to be an actual Zune handset? Then we thought Zune software was going to end up in a Nokia handset. And the last rumour we heard churning in that Microsoft mill told us Zune software was coming to Windows Mobile 7. We're still none the wiser on any of the above and faith in the rumours has been beginning to deplete. That is, until about an hour ago.

The latest buzz surrounding the illusory Zune phone is that it's not that illusory after all and might be making its debut at CES next year. Apparently, it's been code named 'Pink' and is being developed this very minute. According to sources, Microsoft "is ready to give a major facelift to the company's Zune music player that could mean its evolution into a new smart phone from the company." So the player and Microsoft could potentially find themselves in smart phone territory next year.

At this stage, it's hard to tell fact from fiction. But expect that rumour mill to keep on churning until we see something concrete.

[via Electric Pig]

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