There are several reasons why a Microsoft ZunePhone is a bad idea, especially if it’s intended to be an iPhone killer. For starters, iPhone built on the barnstorming success of the iPod, which is a significantly stronger brand than the Zune - which isn’t even out in Europe yet. Still, Microsoft has inadvertently resparked rumours of a ZunePhone with an internal memo from CEO Steve Ballmer, which talks about a change in the company’s mobile strategy to compete directly with Apple:
“There is no doubt that Apple is thriving. Why? Because they are good at providing an experience that is narrow but complete, while our commitment to choice often comes with some compromises to the end-to-end experience,” he says. “Today, we’re changing the way we work with hardware vendors to ensure that we can provide complete experiences with absolutely no compromises. We’ll do the same with phones - providing choice as we work to create great end-to-end experiences.“
That’s hardly conclusive evidence of a ZunePhone (why not an XboxPhone - it’s a stronger brand!). Nevertheless, it seems Microsoft is keen to exert more control over the handsets its Windows Mobile operating system is installed on - which could involve some kind of own branding. We’ll have to see how this one develops.
Microsoft has entered into talks with French mobile music specialist 
