One of those rumors that won't ever die—the Zune phone—is now being touted by a reputable, legitimate news organization, CNBC. Jim Goldman (the guy that interviews Steve Jobs on CNBC after every Apple event) says that according a "good source," 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." The project is codenamed Pink and "will combine the company's Zune and technology from Microsoft's purchase of Danger Inc." Update: If this rings a bell, it's because others have, in the past, referred to Microsoft's mysterious consumer smartphone initiative as "Pink" or "Purple and Pink" This has actually been the consistent beat on the drum for at least seven months, with Microsoft itself dropping hints that it wanted to combine Danger's consumer-friendly OS expertise with the Zune. You know what? It actually makes us pretty excited. A ZunePhone made by Danger might be the Microsoft smartphone we've been really waiting for. [CNBC]
I feel pretty confident that when this thing comes to light, it won't be a smartphone. Neither the Sidekick nor the Zune are open platforms (though they're both kinda-sorta half way there).
I fully believe that this story is correct, but the resulting phone will not run Windows Mobile, nor will it be a full-on iPhone competitor with an App Store. It will be a consumer-oriented feature phone with no business features to speak of.