The company’s CEO, Steve Ballmer made a subtle reference to a possible change of course that could result in some form of Microsoft branded handset. In an all-points bulletin sent out to Microsoft employees, the CEO said:
“We’re changing the way we work with hardware vendors to ensure that we can provide complete experiences with absolutely no compromises. We’ll do the same with phones—providing choice as we work to create great end-to-end experiences.”
The discovery of phone references within the Zune’s inf file certainly suggests of the existence of a Zune Phone but we will have to wait a few more weeks to find out if this is real or just a rumor.

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