In the world of mobile devices, rumors abound, but a particularly interesting one keeps popping up and won’t seem to die. That rumor involves the possibility of a Zune phone. It seems a meeting may (or may not) be held this week in Redmond that would involve the discussion of a Zune phone to compete with the iPhone.

All we know thus far is that if this were to happen, the Zune phone would have the new version of Windows Mobile, at the moment called Windows Mobile 7 and would work primarily around Windows Live Services.

This phone would be put in direct competition with the iPhone 3G–meaning it would have a touchscreen and multi-touch capabilities. Nothing’s confirmed yet, but it would make sense for Microsoft to make this move. After all, they have a media-friendly device (the Zune), why not incorporate those qualities into their Windows Mobile platform?

[via the::unwired]