It was not too long ago that Apple made the huge announcement which many have been waiting for quite some time, that an iPhone was on the way.Microsoft it seems has always been quite envious of Apple and the success it has had with the iPod devices whether it be the full-out iPod Videos or the smaller more portable iPod Shuffles. Apple has managed to build a massive brand with the iPod and is now expanding it into the mobile phone market with the iPhone.

Just as Microsoft followed-suit or copied to an extent, the iPod with their Zune device released this past fall which packs with it many of the same features of an iPod Video along with an extra wireless feature allowing two Zunes to link up wirelessly or via an Xbox 360.

It seems now that Microsoft may be copying Apple once again in terms of business strategy as it appears that Microsoft is hard at work on a Zune Phone which could be appearing as early as this year.

The rumor which is running rampant is that by the end of the year Microsoft will roll out a Zune Phone to try and combat Apple’s iPhone and dethrone it from its impending dominance. Microsoft is not a stranger by any means to the mobile phone world as Windows Mobile is usually a very common operating system used on many highly popular smart phones available on the market. This means that they already have the system in place in terms of software. All they need now is the hardware: enter the Zune Phone.

Ideas which have been circulating regarding this development include some cool features which the Zune Phone will likely pack with it. One idea is that the Zune Phone would be able to stream video which was downloaded to an Xbox 360 directly to the phone via Wi-Fi. The only thing with this feature though is that no cellular connection would be necessary for such a set-up.

Other ideas which have spread revolve around the idea behind Windows Live and how Microsoft wants to integrate their Live service on Windows and the Xbox 360 so it is more of a social experience. A Zune Phone packed with features which push the whole Live idea to a social realm could help expand that opportunity vastly.

This is all still rumors to this point but considering how Microsoft works in terms of their products you never know what they are going to do. If they see an opportunity to take a good chunk of the market and could perhaps jump in with a Zune Phone with similar features and a far more competitive price, as well as a different carrier, then they could have the ultimate smart phone on their hands with all of the operating functionalities of the top of the line phones currently on the market along with some amazing multimedia capabilities. We will have to wait and see but keep your fingers crossed on this one. There is nothing wrong with some competition. With the way this is all going though one has to wonder why Microsoft wouldn’t just call it the iZune Phone.