Zune Phone? Not Likely

Michael Gartenberg | July 24, 2008, 12:36 PM

Rumors persist about a Zune phone. I say it's totally unlikely for a pretty simple reason. The business model of Windows Mobile is totally different than Zune.

Zune worked to some extent since the technology Microsoft was licensing wasn't getting them anywhere. As it was, hardware partners were taken aback by Microsoft's actions but were still comfortable licensing. The phone is different. WinMo is a core platform and OS. No one has ever been successful licensing technology platforms to others and then competing with a device of their own. Apple failed (twice), Palm and Nokia all tried it and it just can't be done. Microsoft now has traction with more than 20 million licenses out there and a great stream of partners and new phones for consumer and business use. A Zune phone from MSFT would potentially hurt all that.

Moreover, how would MSFT bring this to market? There's no mass market for unlocked phones in the US (just ask Nokia how hard it is to sell a high end phone with no carrier). MSFT as an MVNO? Not happening. A partnership as Apple did with the iPhone? Well, it could work but boy would that alienate licenses.

There's certainly some likelihood of MSFT exploring a Zune phone but far more likely mobile Zune branded functions just get baked into a future version of Windows Mobile.