There have been rumors about Microsoft releasing a Zune Mobile Phone, that the company had quickly denied. It is also very unreasonable to think Microsoft is going to jeopardize relationships with Windows Mobile partners. What is much more feasible is a new rumor that points to a new platform that brings the Zune music platform to Windows Mobile devices.
This is long over due and I hope for MS the rumors are true that they will bring the Zune infrastructure to smart phones. This would enable Windows handset makers to compete with the iPhone iTunes eco system and the Nokia Ovi services. The Zune mobile platform hopefully will bring also an app store that brings Windows smartphone apps to one single place.
The Zune Mobile platform got mentioned by Paul Thurrott. Via Engadget.