While a Microsoft Zune Phone has been rumoured for months, no less a reliable source than Barrons says that a Zune Phone will be out by the first week of January. The Zune Phone, rumoured to be the industry-whispered “Project Pink”, will be unveiled at CES, say industry insiders.

Barron’s Eric Savetz has quoted Global Equities Research’s Trip Chowdhry, saying that Microsoft “will unveil a new device combining the features of the company’s Zune music player and its Danger Sidekick handhelds.”

Of course, the Sidekick to which they refer is none other than our own beloved T-Mobile Sidekick, the phone that we wouldn’t trade even for an iPhone. (But that we did finally retire in favour of the G1 Google Android phone.)

Microsoft acquired the Sidekick property earlier this year, and so it makes perfect sense that the Zune Phone will be a combination of the Sidekick’s incredible mobile platform, enhanced with the MP3 function of the zune.