Ahh, the Zune-phone. Ever since the iPhone launched, folks have been waiting to see Microsoft deliver up a counter to it. For a while, it seemed like they never would. Zune phone rumors flew by with little to no evidence of an actual device ever creeping up. Microsoft continues to lose market share with WinMo 6.5 (although 7 might reverse the trend) and, on the whole, they don't appear to be in any shape to give the iPhone a run for its money.
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And yet, here's some real live evidence that says it may be so (via SlashGear). Long Zhen, a tech blogger, spent some time poking through the code for a new Zune software update. Inside it, he found references to the Zune phone. Here are the lines of code in question,
"%Phone.DeviceDesc% = ZuneMTPZUSB, USBVID_045E&PID_0640 %Phone.DeviceDesc% = ZuneMTPZUSB, USBVID_045E&PID_0641 %Phone.DeviceDesc% = ZuneMTPZUSB, USBVID_045E&PID_0642"
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The three product IDs in the code point to three potential models of Zune Phone. These could be different storage sizes, or different models of phone entirely. Either way, we now have proof that Microsoft is, or at least was, working on a Zune phone. Now, the question remains; will we ever get to see it?