Microsoft plans Zune phone, says Crunchgear

MICROSOFT is following Apple's iPhone lead with plans to introduce a Zune phone, according to a report.

Crunchgear reports that the phone is unlikely to run Windows Mobile but will instead use a Zune-like interface. It will also be able to sync with the Xbox 360 and be capable of streaming video from a wireless link. The anticipated delivery date? In time for the Christmas sales bonanza, natch.

Crunchgear says its story is based on “a sound tip” and is “as definite as tips can be” but a Zune phone makes sense anyhow as standalone music players approach cornflakes-giveaway status.

However, there is a small catch for Microsoft that Apple has not faced. If it brands its own phone, what will be the response of hardware partners that have stood loyally by while Symbian has dealt Windows Mobile a hiding in the marketplace? µ