Microsoft remains adamant that there will not be a Zune phone in the future. Citing the fact they ship “a lot” of 3G phones with Windows Mobile, Robbie Bach president of Microsoft’s consumer-facing entertainment and devices unit says the company has no plans to introduce a Zune phone. In an interview with the San Francisco Chronicle, Bach says that smart phones (that is phones that are essentially a full computer) are the wave of the future and iPhones, which are mostly targeted towards user’s mobile needs, are not Microsoft’s focus. Of course, the iPhone is considered a "smart phone" so I'm not sure how this is setting Microsoft apart from Apple.

That’s bad news for anyone who was hoping for a Closer-themed Zune Phone to replace their Unknown Pleasures-themed Zune. [Moconews.net via The Daily Swarm]