A Spanish-language Web site says that a Microsoft app phone will definitley be appearing at this year's Mobile World Congress in Barcelona.
Redmond's answer to the iPhone will appear at Mobilepalooza according to a leak from within Nvidia which is supplying the Tegra graphics chip for the handset.
Code named the Pink Phone, the Zune handset will apparently be able to play back video at 720p hi def using a built in HDMI port, and will concentrate on mobile games as its killer app.
There's no confirmation that the device will run the much-delayed Window 7 Mobile OS, but the launch of the handset and the operating system are widely expected to coincide.
The source is said to be "100 per cent reliable" but we all know what that means in the funny old world of tech.