Just hours ago we snapped this photo of the new Windows CE-based cellular phone. The hardware, designed by Microsoft to demonstrate the usability features of the operating system code-named "Stinger", is one of two prototypes. The other prototype is a slightly smaller version of the phone with a black & white screen. Navigation on the prototype is achieved via the four-direction scroll button above the keypad and the menu is activated via the Windows key. Microsoft reports that the special version of Windows CE running on the "Stinger Phone" uses less memory and less battery life. Applications running on the demo phone included Pocket Outlook, Pocket Internet Explorer and Blackjack. 

Microsoft also reported that they believe the phone will become the "primary [tool] for access to the web" eclipsing even desktops in the coming years.