Microsoft Courier, Microsoft’s answer to the iPad [leaked pictures]

Update: Sources have told the popular technology blog Gizmodo that Microsoft has cancelled the Courier project.

Meet Courier, Microsoft’s answer to the Apple iPad.

Microsoft has yet to confirm it is working on such a device, dubbed a digital journal, but recent leaks, including the latest leaked images published by AOL’s popular tech blog Engadget, confirms the device.

Unconfirmed reports suggest Courier will be powered by the new Windows Phone 7 Series operating system, and not the traditional Windows 7 OS found on PCs.

 Other unconfirmed features say the device is less than a single inch thick, just over one pound in weight, and as small as 5×7 inches when the device is folded closed. Other features include handwriting recognition, a camera, and a headphone jack.

Microsoft Courier will also serve as an eBook reader complete with an eBook store, similar to that of the eBook store that is on the iPad. However, reading a book on Microsoft Courier right now seems like it would be a more intuitive experience as Courier actually has two LCDs that serve as pages, just like a real book. As seen in the second video below, flicking the screen easily changes pages.

One of the more interesting features of Courier is the ability to synchronize data you enter on your device to the cloud with comments. Essentially, there is a “journal” app that lets you add, cut and paste content and have it sync to the cloud with collaborative sharing with friends.

Engadget is reporting the device could launch in Q3 or Q4 of 2010. Microsoft Courier firstly debuted online back in September 2009.

The new details about Microsoft Courier emerged as the Apple stock (NASDAQ:AAPL) hit an all time high just shy of $220 per share yesterday as momentum builds towards the company’s much anticipated iPad tablet launch on April 3rd in the U.S. and in Canada by the end of the same month.