Since they're in the Windows Mobile business.

Apr 27, 2007 09:10 GMT  ·  By

There were quite a few rumors pointing to the future release of Microsoft's Zune phone. However, a recent USA Today interview with Steve Ballmer, Microsoft CEO has clarified things, revealing that the company isn't planning to adopt an Apple approach and is not about to create a Zune phone.

The company will however develop a Windows Mobile powered mobile that will - among other things - also have Zune capabilities. So, basically, while the iPhone is sort of an iPod with phone capabilities, Microsoft's future phone will be more of a smartphone with some of Zune's functionality.

A Zune phone is "not a concept you'll ever get from us," Ballmer said. "We're in the Windows Mobile business. "We can put Zune into Windows Mobile," he continued. "We can pour everything in."

So, users should expect a web-enabled phone with advanced features that is running Windows Mobile and at the same time targets a slightly younger audience than HTC's products do, for example.

Moreover, Ballmer hinted at the fact that Xbox capabilities might be included in the new phone, although now he stated exactly what features they are planning to add. So, while everyone excepted a full-touchscreen multimedia-powerhorse with Zune branding, they'll be getting yet another Windows Mobile powered device that might not be very different from all the other ones available on the market.

Then again, Microsoft may be taking a smarter approach to things. While iPhone clones will continue to surface, and since the handset's release every manufacturer seems to want to prove just how well it can imitate, Microsoft might be cooking up a product that might actually bring some innovation and novelty to the phone market.