Microsoft Zune phone may hurt sales of Windows Mobile-based phones

  • Microsoft's plan to launch a Zune-branded phone might hurt sales of its Windows Mobile platform products since it may compete with Windows Mobile-based mobile devices, according to sources at Taiwan handset makers.

    With Taiwan handset makers now manufacturing over 90% of Windows Mobile-based PDA phones and smartphones in use worldwide, Microsoft should consider licensing its Zune-based platform and related software to handset makers to produce Zune-based products in volume so as to effectively compete with Apple Computer, the sources stated.

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