It was inevitable that more rumors of a possible Zune phone would begin circulating. It makes perfect sense. Microsoft has got to want a slice of Apple pie. Why wouldn’t they be planning a Zune phone to go up against the iPhone?

It’s expected to be a touchscreen based smartphone. One of the rumors has the Zune phone running on a special version of Windows Mobile 7, with key functionality built around Windows Live Services. We’ll find out one way or another. Hopefully a Zune phone would fare better then zune Vs. iPod.