Zune Phone provides competition to Apple iPhone

I posted an internal link this morning to Engauge’s Yammer group, about news that Microsoft is readying an announcement of the release of a Zune Phone. I titled my link “Is the iPhone in Danger” because the new device will carry that name and holy cow — the entire Development team started going back and forth on whether this rumor has any impact on Apple.

From our discussion, I can tell you that:

  • Since the launch of the iPhone, the field of touchscreen phone had drastically expanded and continues to grow (Nokia just made an announcement about their N85) so Apple will feel a pinch.
  • We’re creatures of habit so those of us that enjoy our beloved iPhone 3G or BlackBerry Storm will overlook the flaws and stick with that kind of device. And in regards to a Zune Phone, those that like their Windows Mobile powered device will flock to the new Danger.

Even if Apple tries to expand their iPhone distribution network to Walmart (which seems like a big mistake since the value proposition of Walmart is low prices and it flies in what Apple’s brand exudes), I think that the iPhone will start feeling the pressure.

It is time for more innovation out of Apple — I want another cool feature like the accelerometer.

UPDATE: Gizmodo has clarified that a Zune Phone will not be released at CES. Darn those pesky rumors!!!

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  • William
    "the iPod is hardware and the Zune is software"

    "you can’t compare them (or use history as an indicator of what will happen)"

    "Improvements to Microsoft’s Windows Mobile will help them recapture market share from Apple and others."

    Hi, I'm Earth...have we met?
  • Well, the iPod is hardware and the Zune is software plus the iPod was launched in 2001 so you can't compare them (or use history as an indicator of what will happen).

    Improvements to Microsoft's Windows Mobile will help them recapture market share from Apple and others.
  • Angie Terrell
    Given the history of the Zune and the iPod, I can't imagine that iPhone will feel any pressure from MS's new phone. It's had an abysmal sales history as an MP3 player.
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