Robbie Bach, the man responsible for Xbox, Zune, and Windows Mobile divisions did mention “We don't make phones ourselves. We don't have any plans to make phones ourselves. A phone is a very personal thing. Different people want different types of phones.” Guess that could be taken as a confirmation that a Zune-branded phone is but an impossibility, although that doesn't mean that the Zune won't be able to function as a piece of software or service on a Windows Mobile-powered device. In addition, Robbie did drop hints of a Zune Touch. I only hope should Microsoft take the touchy-feely route, they will improve on the UI that makes Apple's iPhone and iPod touch huge sellers.
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[Source: Ubergizmo]