The delay of Windows Mobile 7 is the reason behind the speculated failure of Microsoft’s coupe against the iPhone with rival partner Verizon Wireless. Rumors on the Pink handset from Microsoft have pegged the code name brand from hardware, which the software firm has repeatedly deny, and more recently about Pink software, which will run on Windows Mobile devices. The latest internet speculation has it that Pink will be a combination of hardware and software designed exclusively for Verizon Wireless to give Microsoft a leg up on devices like the iPhone. The latest Pink rendering looks like the Zune HD.

According to Electronista, developers were hoping to port some features from Windows Mobile 7 in advance of a Windows Mobile 7 release onto the Pink project for Verizon. However, delays from the Windows Mobile 7 project itself is making the Pink team feel constrained.

While all this is pure speculation, it does beg the question of what hardware requirements Windows Mobile 7 and beyond may have and what Microsoft’s focus for Windows Mobile may be. Given that the platform has been traditionally geared at enterprise users, Microsoft’s foray into the consumer space may force a change in strategy or an entertainment/infotainment focus that drives the iPhone App Store.