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03 February 2007, 15:03
A phone? So Zune? Microsoft's pledged to shoehorn a mobile into its player before long ...
Robbie Bach, president of Microsoft's entertainment and devices division, said it too is considering a mobile phone integrated with its Zune digital music player, but launching such a device is not at top of its priority list.The iPod beat Microsoft to the portable music device market by what, five years, so don't be surprised that it doesn't look like they're going to let Apple off so easily on a cellphone -- especially not while they've got a fighting chance. At a press conference today, Chris Stephenson, GM for Zune, told the press, "A Zune phone is definitely part of the future of this brand." We did definitely hear before that Microsoft was working toward setting up an MVNO, but even if that never takes off, there's no reason to believe the Zunephone won't spring to life regardless. As much as we love our HTCs, let's just hope it isn't a Windows Mobile device given a facelift -- we all know that, like PlaysForSure, the problems with adapting off-the-shelf Microsoft stuff are more than skin deep.
Microsoft launched its Zune portable music player in November and set a sales target of more than one million units by the end of June. It is the first Microsoft-designed device in a market dominated by Apple, which has sold more than 70 million iPods since it was launched in October 2001.
The longtime Apple rival plans to come out with new Zune models later this year, but Bach said do not count on a phone model just yet.
 "It's probably on the table of things for us to look at, but not the number one thing we are focused on," said Bach, speaking to analysts at the Consumer Electronics Show in Las Vegas.
It will be a smartphone that works homogeneously with the Zune marketplace. It will most likely not, however, run Windows Mobile. Rather it’ll make use of an interface similar to the current Zune, an interface that I consider among the best available on audio players—I’m sure it can transition to a phone easily. Many Apple watchers are expecting Apple co-founder and CEO Steve Jobs to announce an iPod phone on Tuesday at Macworld in San Francisco. Analysts estimate such a phone could sell for $200 to $400, depending on its configuration.
 Apple's iPhone remains elusive, so maybe the Zune can beat the 'Pod makers with a Windows Mobile-equipped player... Analysts have said Apple may sell the phone with its own branded cell phone service via an MVNO, or mobile virtual network operator, under which Apple leases excess capacity from other carriers.
That three-inch screen might just be big enough for movies, so we'd welcome Microsoft challenging Apple there too! Or, they have said, Apple might instead sell the phone "unlocked," in which case buyers could choose the cell phone service provider they want to use.
Connectivity is the major concern of the device. It is said that it will be able to sync with the Xbox 360 and stream video from the system to the phone via a wireless data connection. This would be pivotal in Microsoft’s proliferation of its media ambitions. Not only does it already have millions of 360s in homes capable of downloading movies, it’d be able to distribute those videos directly to its phones. Cool stuff. "The latest rumor we hear is that it is going to be a MVNO phone and there hasn't been a lot of successes in that MVNO space for a lot of different reasons," said Bach, who oversees the Zune business and Microsoft's video game division.
"Historically, working with partners hasn't been a strong point for Apple, so maybe it will find a way to work around those relationships," he said.
An Apple spokesman said the company does not comment on rumors or speculation.
Putting together a phone with a media player raises many design questions, including how to manage various inputs, the optimal screen size and battery life, Bach said.
"You have to find out what it's great at. Is it great as a phone or is it great as music player? If it's great as a music player, then it's just another iPod trying to be a phone," said Bach.
After the release of the iPhone, or even after the planning of the iPhone it has started to become a big idea for other major MP4 companies. Zune being one of them, they figure that if one company makes something, they have to do the same and better to keep stealing the market from them.
Reporter: "Any thoughts on how you can compete as cell phones become more prevalent as far as MP3 playing technology?"
Chris Stephenson, GM, Zune marketing: "As I said earlier on, the entire Zune platform and brand is about a family of devices. So to the degree that phones and other products exist in the family going forward, absolutely, that's definitely where this is all going." The rumour of Microsoft possibly releasing the Zune phone became popular a few months ago however nothing really happened since then. A interview with the general manager of Zune marketing responded to the question of the chance of Zune making its’ own version of the iPhone and he declared that there is a possibility for creating the Zune phone. This interview also was taken around the time of the rumours (a week after many) and seems to be a reply to many gossipers on the web.
Reporter: "So a Zune phone is somewhere over the horizon?"
Stephenson: "There is a possibility for a Zune phone, yes." On the same day, another site made rumours about Microsoft planning to release a Zune-based phone in the future. Assuming he read the interview before posting this on his web site. Microsoft plans to increase their electronical device market within the musical region and by doing this they should be successful.
Later, another reporter: "You raised the possibility of a Zune phone. Does that mean it's going to be a Zune-branded phone, or is it going to be a phone made by someone else with the Zune software on it?"
Stephenson: "We don't have any specifics to announce on that. I think what I was saying is that a Zune phone is definitely part of the future of this brand. We really don't have any specifics to announce right now." There are no details about the phone released. However, just like the iPhone was surprisingly released, it is suspected Zune will do the same, looking for the best time to enter the market. If Zune itself can begin to steal the market off of iPod, it is a great choice to create the Zune phone. Increasing Zune’s market will lead to success in the launch of the Zune phone.
Some thoughts come to mind on the features with the Zune phone if released. It is highly possible that they will allow customers to share a selection of music wirelessly with other Zune phone users through WiFi or maybe even Bluetooth. The users of the Zune phone will likely be able to buy music to download it straight from the phone. It is still undetermined whether the phone will permit video downloading or viewing.
With big plans for Microsoft, it seems that the Zune phone is the least of their worries and is a back up plan or they do plan on releasing it when the time is right. If Microsoft plays their cards right and creates many distinctive features, they may be able to steal the market of the iPhone but are they going to rush into and see a release early in the year or will it be laid off for sometime to attack when the market of the iPhone dies down?
Many questions go through the mind of consumers and these questions definitely attack the Zune market of Microsoft every day. Depending on their decissions, they may be able to slowly and gradually steal the market right from under Apple making them the biggest company in their league. Many are convinced that they will follow Apple and create the Zune phone but maybe Zune has something else in store like the Zune fire alarm that plays a annoying sound for 5 seconds then has soothing Beethoven music for the rest of the time…includes a remote to change songs, stores up to 200 songs for those bad cooking days. The main goal in mind is for Zune to increase their amount of consumers and by taking a cut in Apple’s market, they can do so successfully.
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