We have been hearing WM7 rumours from all the sources including DigiTimes, but CNET has sources that Windows Mobile 7 is coming this year for sure. It is also confirmed that Microsoft will finalize the code for WM7 till September release. It will all start with MWC next month.

Earlier reports suggest the Windows Mobile 7 launch may be delayed until 2011. As companies wait for the major revision, many of the recent smartphone introductions have focused on other platforms such as Android. Motorola has admitted that its 2010 lineup will not include any devices based on Microsoft’s mobile platform.

After the findings of possible Zune phone drivers on the updates, Neowin questioned Microsoft but a spokesperson confirmed “we have no plans to create a Zune phone.” The spokesperson also stated that one day Zune could be “part of the phone experience” but added there had been no announcements by the software giant regarding how or if that would happen. However, Microsoft always strongly denied they would brand an MP3 device, aka the Zune. If a recent Microsoft job listing is anything to go by then the fact the company is looking to employee an individual with “working knowledge of cell-phone 2G and 3G technologies” certainly reveals that it’s something they are considering for the future.

Since the launch of the first iPhone people have increasingly disregarded Microsoft’s Windows Mobile seemingly mostly due to its unchanged appearance and UI. Windows mobile is actually a very capable mobile OS with one of the widest range of devices, the largest number of applications and the most functionality. But in the world of technology only the newest devices with the most potential get the headlines and therefore the most people buying them.

Microsoft Corp. plans to unveil its new mobile-phone operating system next month, a bid to reverse market share losses to Google Inc. and Apple Inc., according to a person familiar with the matter.The company may use the Mobile World Congress in Barcelona to demonstrate the new software, called Windows Mobile 7, said the person, who didn’t want to be identified because the plans are confidential. The decision isn’t final, the person said.