UPDATED: New Zunephone Rumours

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I know, I know, this one’s been round the block a few times, but given Microsoft’s dalliances with portable media players, and the fact that they own the most popular smartphone OS in Windows Mobile, it’s nearly a given that there’ll be some sort of Zunephone before long.

The rumours have resurfaced after the announcement that Microsoft CEO Steve Ballmer will be delivering the keynote address – the spot which was previously filled by Bill Gates. Microsoft almost always unveils something at CES, and given that we know plenty about Windows 7 already, a Zunephone is on the cards.