A Zune phone from Microsoft going against Apple's iPhone is in no way a part of an unrealistic scenario, according to the Redmond company. Following the introduction of the Zune media player in November 2006, speculations began circulating revealing that Microsoft was cooking an unexpected evolution for the product. The Redmond company constantly failed to confirm rumors that it was transitioning Zune from a digital media player into the area of a multipurpose mobile device by including phone capabilities.

However, Microsoft seems to have changed its tune, according to Mindy Mount, Corporate Vice President and Chief Financial Officer, Entertainment and Devices Division, following a meeting at the global technology conference under the Citigroup umbrella in New York with investors. According to Mount, Microsoft is indeed considering the introduction of a device combining a mobile phone with the Zune digital media player. Such an item would naturally go against Apple's iPhone.

The scenario is fueled by the constant demand for multimedia, multitasking and multirole devices combining the functionality of a phone with that of a portable media player. But in this context, Microsoft is not only considering a Zune phone, but also an integrated business model.

This means that, just like Apple, Microsoft too could end up producing both the hardware and the software for the Zune phone. Of course that the software will be nothing more than a variation of the company's current Windows Mobile operating system. In this regard Microsoft would leverage the success of Windows Mobile, currently the fastest growing operating system in the world, to push Zune phone.

Initially Microsoft did reveal that the Zune phone was part of its longtime strategy. And Microsoft's CEO Steve Ballmer did a complete 180 and stated that the Zune phone will never be a concept the Redmond company will deliver. Now, Mount deals another contradictory vision over Microsoft's strategy for Zune and Windows Mobile. The only downside to this cat and mouse game the company is playing with itself is that by the time the Zune phone hits the market, it is possible to have abother Zune vs. iPod scenario and that didn't go too well for Zune.