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The ZunePhone is dead. Long live the ZunePhone

Much is being made of Microsoft Chairman Bill Gates' proclamation this week that Microsoft won't release an iPhone competitor. But I interpret Gates' remarks a bit differently than some Microsoft watchers. I think all Gates is saying Microsoft won't build a phone.
Written by Mary Jo Foley, Senior Contributing Editor

Much is being made of Microsoft Chairman Bill Gates' proclamation this week that Microsoft won't release an iPhone competitor.  But I interpret Gates' remarks a bit differently than some Microsoft watchers. I think all Gates is saying Microsoft won't build a phone.

If you read his response carefully, Gates said Microsoft will continue to focus on Windows Mobile software. That's not too surprising here: Other than a few forays into hardware (Xbox, Zune, keyboards, mice and joysticks), Microsoft has stayed out of the hardware business.

But Gates didn't say Microsoft wouldn't develop software that allows smartphone users to listen to music and make calls. Nor did he say Microsoft wouldn't support a device maker who wanted to make an iPhone competitor. He also didn't mention Softie Roz Ho's Pink and Purple project, which my sources claim, is continuing to dabble with a ZunePhone-type device. (Anyone have any new info on what's going on with Pink and/or Purple?)

What do you think? Will some vendor release a Windows Mobile-based ZunePhone in 2008?

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