Of course, the devil could lie in the precise wording, and the exact quote was as follows: "Microsoft is not going into the phone hardware business. Microsoft is not building a Zune-specific phone." Just because there's not a "Zune-specific phone" doesn't mean you can't steal some Zune tech for the phone business, and we have every reason to believe that Microsoft would want to be building Zune-esque features into Windows Mobile -- you can start to see tiny slivers of that in 6.5 with the home screen design, for example -- so we're still pretty confident that Pink (or another project) will ultimately marry portions of the technology and branding. In other words: Zunephone, no; Zune on Windows Mobile, though? Yeah, sure, why not?
Microsoft Zune HD