Microsoft warns Apple about iPhone

THE MAKER OF software, Microsoft has warned the maker of entertainment gear, Apple that rolling out an iPhone might be a gizmo too far.

Apple is expected to announce an iPhone as part of its latest range of wow gadgets today, but Robbie Bach, president of Microsoft's entertainment and devices division, said the project has too many hurdles in the short term.

According to Reuters, Bach said he was considering jacking a phone under the bonnet of the Zune, but it was not high on his list.

Bach said Volish spies told him that Apple is going to flog its iPhone via a mobile virtual network operator, under which Apple leases excess capacity from other carriers.

However he said that few manufacturers have managed to pull off that particular business model. In fact the only mobile virtual network operator which has had any real success in the US was Virgin Mobile.

Besides Apple is not particularly good at working with partners, he added. µ