Rumor: Microsoft & Verizon in talks to launch "Pink" mobile

We've known for quite some time now that the folks up in Redmond were working on a top-secret Windows Mobile 7 powered device, dubbed codename: Pink. Our friend Mary Jo Foley has had an obsession for codename Pink for the last few years. Today the Wall Street Journal reported that Microsoft and Verizon are currently in talks in launching a "touch-screen multimedia cellphone on the carrier's network early next year."

Microsoft's CEO Steve Ballmer has already confirmed that Microsoft will not be producing the physical hardware for codename Pink, but the company will have the phone branded with the Microsoft logo. The focus on codename Pink will be Zune services, Windows Mobile Marketplace, MyPhone Services, and Windows Mobile 7.

Microsoft has yet to release any details on who will be manufacturing the device, or when the device will ship. Sources have told us that the device itself still hasn't reached manufacturing phase. One source told us, "Pink will launch around the time Windows Mobile 7 does next year."

An interesting point to mention is the fact that Apple and Verizon are currently in negotiations regarding a CMDA iPhone launch. I wonder how this will play out, Verizon carrying the new iPhone and Microsoft's "Pink"? What are your thoughts?