ZuneHD 2 confirmed by Microsoft denial?

ZuneHD2 confirmed?From previous posts we know Microsoft’s Zune team are working on new hardware, but the question did arise whether it would be a new Zune phone or in fact the ZuneHD 2

Now however we have a denial by Microsoft of any intent to enter the smartphone OEM market again.  When asked if they are making another handset Tivanka Ellawala, CFO of Microsoft’s Mobile Communications Business Unit told investors “We are in the software business and that is where our business will be focused.”

Recent rumours arising from a job posting by Microsoft suggest the ZuneHD 2 will be under the Windows Phone 7 umbrella, implying the device may play the same role as the iPod Touch to Apple’s iPhone, offering a Windows Phone experience without the expensive carrier contract.

Read more at Wall Street Journal here.