We already know that Microsoft CEO Steve Ballmer has taken shots at the iPhone calling it the "most expensive phone in the world" and contrasting it with aggregate sales of phones using Microsoft's Windows Mobile operating system, claiming Microsoft sales in the "millions and millions and millions of phones a year" while "Apple sells zero," and openly cackling at mere mention of Apple's handheld.
Fast forward to 2009 and you';; find Ballmer singing a new song about the iPhone. He recently spoke to the Financial Times (FT) (registered access required) and told them that the iPhone and BlackBerry have "clear market momentum" in the smartphone business.
What about a Zune phone? Ballmer told FT: "You should not anticipate that." Further discussion indicated that Microsoft probably would not be creating its own branded smartphone. Instead Microsoft "would stick to its strategy of developing software to support a range of mobile devices." Such software would then appear in devices created by mobile phone manufactures possibly sporting some of the Zunes music features.