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July 24, 2008 8:18 PM PDT

Zune phone rumors persist

by Matt Rosoff
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A quick follow-up to my earlier post about the lack of Zune mentions in Microsoft's presentations to financial analysts today. Mobile market follower James Kendrick blogs that Microsoft is holding its first serious internal meetings to coordinate the development of a Zune phone.

A completely unofficial mockup of a possible "Zune Phone," put together by a fan in the ZuneScene forums.

(Credit: ZuneScene)

I don't have any inside knowledge about these meetings, but I don't doubt it for a second. Kendrick's posting, which is based on an unsourced rumor, suggests that any such phone will be based on Windows Mobile 7, will have a touch screen, and will feature connections to Windows Live services.

My guess: there will be plenty of Windows Mobile 7 phones in lots of form factors, and all will feature built-in connections to Microsoft's online services--that's the best chance they have to step ahead of the iPhone, whose MobileMe service is drawing flak even from big Apple fans. At the same time, the company will probably create hardware reference designs for one or two phones specifically designed for consumers, and meant to compete against the iPhone. These phones will connect to the Zune PC client software and Zune Marketplace, but otherwise will bear little resemblance to Microsoft's MP3 player. Touch screens are a must, but Microsoft will probably contract the manufacturing out--just like Danger did with its Sidekicks. (Microsoft acquired Danger earlier this year.) Likely timing will be 2009--I don't think they can get it out this year, unless this project's a lot farther along than Microsoft's letting on.

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995, and reviewed the first Rio MP3 player for CNET.com in 1998. He is a member of the CNET Blog Network. Disclosure. You can follow Matt on Twitter @mattrosoff.
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by robvme July 24, 2008 10:05 PM PDT
Doubtful. The Smartphone already outsells iPhone 2 to 1, even during the debut of the iPhone. Microsoft has no desire to cut out all of its mobile partners and operators. Microsoft is going to focus more on Cloud services. The acquisition of Danger has probably more to do about Microsoft Surface than developing a new piece of hardware. Microsoft, wants the software platform, not the hardware. There are already plenty of great phones out their for business, entertainment, and texting. Adding another phone to an already successful line would be negligible. Apple is great at delivering an end-to-end experience in narrow fields. Microsoft is going to stay more focused on choice and a broad audience. A Zune phone is probably not going to happen anytime soon.
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by AndrewAmazed July 24, 2008 10:24 PM PDT
Fail.
Should have gave credit to Zunited's admin/founder or whatever Teccom747 who had created the photo/graphic.

Also, I'm wondering why touchscreens are a must...? Before the iPhone came out, there were barely any people interested in touchscreens.
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by Teccom747 July 24, 2008 11:16 PM PDT
Hi, I'm Teccom747, I designed and made that image you used. I am now on Zunited.net and NOT zunescene.

Just thought I'd let you know.

Teccom747 (Jared Marino)
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by doneflop July 25, 2008 11:23 AM PDT
LMAOOOOOOOOOOOOOOOOOOO Zune phone .........
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by kylebuttermore July 25, 2008 11:47 AM PDT
that photo i so old, i saw it like a year ago...
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by AndrewAmazed July 25, 2008 12:42 PM PDT
yes, that photo is quite old...
but still looking quite nice.
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by jes834 July 25, 2008 12:48 PM PDT
no. just concentrate on windows mobile. i will not buy a zune phone. zune? yes. zune phone? no. go windows mobile
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by Drezen July 25, 2008 1:18 PM PDT
I'd love for this to be true and for the Zune phone to be everything I want it to be, but realistically I doubt it will be. Currently I have four device 'needs' that I have to cover: high capacity media player, PDA, phone and GPS satellite navigation. Thanks to my Zune and a Treo 750 with an external bluetooth GPS receiver, I've been able to cram those four functions into two devices, if somewhat inelegantly (external GPS is a PITA).

Logically, the iPhone should be ideal for me but Apple's decision to lock out the GPS functions from the likes of TomTom and the device's relatively small capacity make that a no go.

I'm very happy with my Zune and fairly happy with my Treo, the device I'm dreaming of would be an 80GB Zune smartphone, running Windows Mobile 7, with internal GPS. I can see the high storage capacity being a sticking point as the market in general would rather buy a small, limited device than a bigger one that does everything. That said, if MS were to release a Zune phone that I could install TomTom on at, say, 16 or 32GB I'd find it hard to resist.
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by DakkonA1 July 25, 2008 11:53 PM PDT
Microsoft's mobile offering should be limited to Windows Mobile. Zune should stay a dedicated player. However, what *would* be interesting is if Microsoft offered a separate ZunePlayer/Connect software for Windows Mobile that would allow you to use your Windows Mobile device as a media player that syncs with the Zune desktop software, albeit with some functionality missing (e.g. FM radio).
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by keaura July 26, 2008 1:29 AM PDT
To me, Windows Mobile is a failure. I've not seen one phone that was easier to use or had any incredible features that made the phone worth having. I use a Windows Mobile phone now, and as soon as my contract expires, I'm in line for an iPhone.
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by wmyinzer July 28, 2008 8:21 AM PDT
Both Zune and Windows Mobile are excellent products. However, combining the two probably wouldn't be so great.

Number one, too many peole would perceive it as Microsoft copying off Apple (which isnt true...as much as some people claim it is)

Number two, I dont think too many consumers would be happy with an all-in-one device--despite how good that actually sounds. Most of the people I know with an iPhone have complaints, yet the biggest is that they realize that they're phone, mp3 player, and storage device are all bundled into one delicate device. I think combining so many important things into one product is the wrong way to go, and people are starting to realize that.

Lastly, why fix something that isnt broken? You could use wi-fi (or bluetooth with later Zune generations) to connect wirelessly with Windows Mobile devices. With Windows Mobile as the dominant smartphone platform (and most-liked among business users), and Zune a powerful contender to the iPod, why try the gamble of combining two products together.

Sure, its been done....with very limited success. I think the iPhone has reached its pinnacle...and its a long way down.
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About Digital Noise: Music and Tech

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995 and reviewed the first Rio MP3 player for CNET.com in 1998. He's also a bass guitarist and an avid collector (and digitizer) of LP records. DISCLAIMER: This blog contains the personal opinions of the author and does not necessarily represent the opinions of his employers or of CNET Networks. As an IT industry analyst, the author occasionally agrees to nondisclosure agreements from Microsoft or other companies, and he will not violate the terms of such agreements on this blog.

He is a member of the CNET Blog Network and is not an employee of CNET.

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