Microsoft's CEO has sworn blind that the company is not about to start making its own mobile phones.

But rumours are circling the web that the company may nevertheless deal a blow to rival Apple by bringing its Zune audio tech to phones that run Windows Mobile.

They have been fuelled by comments made by Steve Ballmer to CIO magazine that Microsoft is ultimately planning on migrating its Zune software to other platforms.

Hints are that the audio software could even be part of the Windows Mobile 7 operating system which will be available in the second half of 2009.

This could mean a raft of smartphones, made by the likes of HTC, Sony Ericsson, Samsung and LG, with Microsoft Windows Mobile 7 as the platform, but Zune software for the multimedia tools.

So this means that, although they won't be Microsoft made, the much anticipated, and much rumoured, in fact almost legendary, Zune phone may come into being.

But does this also means that Microsoft will launch an iTunes rival for the new smartphone users to get their content?

Who knows but it's fun speculating.