Rumors are flying yet again about an upcoming Microsoft project codenamed Pink. MS has now hired an ad agency for the project (McCann Erikson) who just happens to be the same ones that do the Zune campaigns. Seemingly on the strength of that connection alone the old Zune Phone rumors have started up again (Pink + Zune ads = Zune Phone? Yeah right.), even though half of Microsoft and Steve Ballmer himself have sworn upside down and backwards that Microsoft is not getting into the handset business.

Of course, there are many indications that a handset of some kind is still in Microsoft’s future. Why else purchase Danger, the creators of the Sidekick phones, unless you will have them design you a phone of some kind? While they may be there just to give a new look and feel to WinMo, their strength was always in intuitive physical design. Also, Mary Jo Foley at ZDNet is still quite convinced this is going to happen…of course she was quite convinced that a secret project named Pink was going to be a Microsoft phone and was about to be announced six months ago as well. However, she is seldom that wrong about Microsoft.

At the moment all we really know for sure is that MS hired an ad agency for a project they call Pink. That’s it. Not much to go on, but the rumor mill is spinning fast. It seems like the tech press is desperate for a Zune Phone, if for no other reason then to mock it compared to the iPhone. Go figger.

Microsoft is refusing to comment of course, but “We are NOT making a phone” has become Microsoft’s version of Apple’s “Steve is perfectly healthy, move along please” mantra. However, Steve was so healthy he now has a new liver…so maybe there is a Zune Phone coming after all, despite the mantra.

(Mock up Credit: SlashGear)

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