Rather than run Microsoft's Windows Mobile smartphone operating system, the phone is expected to use a similar interface to Microsoft's Zune portable media player. Released in the US in September, so far the Zune has meet with a lukewarm response - partially because it isn't compatible with Microsoft's own Windows Media Player software and PlaysForSure digital rights management format.

The Zune phone is believed to be able to sync with Microsoft's Xbox 360 games console and wirelessly stream video from the system to the phone.

Apple's iPhone - combining an iPod and a smartphone - was announced at Macworld in January. It is schedule for release in June, but a dispute with Cisco over the iPhone trademark means it could hit the shelves under another name.{moscomment}