Microsoft and Verizon in talks to produce a new touchscreen phone?

The WSJ is reporting that Microsoft and Verizon are in talks to produce a new touchscreen phone that would challenge Apple's iPhone. According to the report, the device would be ready to be shipped early next year for use on Big Red's network. The project is code-named "Pink" and is expected to use all of the current capabilities of Windows Mobile while adding new features to the OS. It could also include Windows Market place for Mobile which is a challenger to Apple's App Store.

source: WSJ