Contrary to previous rumors, it looks like there won't be a Zune phone after all. Based on the latest reports coming in, Zune Mobile was misconstrued to be a new mobile phone being secretly built at the Redmond camp.
Zune Mobile, apparently, is a Zune-centric software package that's being developed for Windows Mobile. We're still clueless as to what it will actually do, but based on the latest info from reliable sources, it won't be released as part of Windows Mobile 7 so we can more or less expect it to debut ahead of the next iteration of WM. Speculation is that it could be a special add-on that could enable Windows Mobile-running devices to function like a Zune with access to downloadable content through a similarly named online store ala App Store.
Anyway, rumor is that it could be premiered at CES next month so let's not get ahead of ourselves with all these speculation until it's officially confirmed and out already.
