According to Reuters Microsoft will launch a Zune Phone in the future:
REDMOND, Washington, Sept 14 (Reuters) - Microsoft Corp. (MSFT.O: Quote, Profile, Research) said on Thursday a Zune-branded phone is part of its future plans to expand in the digital music market, now dominated by Apple Computer Inc.'s (AAPL.O: Quote, Profile, Research) iPod.
"A Zune phone is definitely part of the future of this brand," Chris Stephenson, general manager of global marketing for Zune, told reporters at a news conference. He did not give specific details.
Microsoft on Thursday unveiled the Zune portable media player and said it will be on sale in the United States this holiday shopping season. Movie downloads will not be part of the first Zune product.
"We're definitely talking to the studios about video. We recognize that it's an important part of this product going forward," said Stephenson.