Microsoft will NOT launch Zune Phone. In an interview with Germany’s Frankfurter Allgemeine Zeitung, when asked whether Microsoft will make the Zune phone, Bill Gates himself responded with: “No, we won’t do that. In the so-called smart phone business we will concentrate solely on software with our Windows Mobile program. We have partnerships with a lot of device manufacturers from Samsung to Motorola and this variety brings us significantly more than if we would make our own mobile phone.”
It was tipped as a possible alternative to the iPhone and would possibly have given Apple a run for the money, but not now as Microsoft is no longer pursuing the Zune phone strategy.