Microsoft dismisses Zune phone idea, chides iPhone

Robbie Bach kicks Zune phone rumours into touch and plays down iPhone's impact.

During a Q&A in advance of Apple's Worldwide Developers Conference, which is expected to kick off this evening with a Steve Jobs keynote announcing the 3G iPhone, Bach reaffirmed Microsoft's commitment to Windows Mobile.

When asked if a Zune phone will ever materialise, Bach said: "We ship lots of 3G phones already on Windows Mobile and have for some time. So we continue driving the path we are driving with Windows Mobile and we are very excited about the approach we have taken this year. About 20 million devices will ship with Windows Mobile on it. We will outsell the iPhone. We will outsell the BlackBerry.

"We don't make phones ourselves. We don't have any plans to make phones ourselves. Our focus is on the belief that a phone is a very personal thing. Different people want different types of phones. We think that is going to continue, and we think Windows Mobile is in a great position to service all those different opportunities. "

When conversation turned to the impact of Apple's iPhone on the market, Bach added: "It actually has less specifically to do with the iPhone and more to do with how the markets are evolving in that whole space. In general, what you are seeing in that phone space is tremendous growth in what people have called smart phones. (It's) growing dramatically. That means more opportunity for us. There is more opportunity for services on top of those phones. There is more opportunity for a richer experience. It's not just about the phone. It's about browsing. It's about music. It's about video. It's about e-mails, text messaging and photos."