"Microsoft chief executive Steve Ballmer, who once laughed off the iPhone, has now conceded to Apple's edge in the market while hinting at a very different future for his company's Zune players.
Ballmer told the Financial Times that the iPhone and BlackBerry have "clear market momentum" in the smartphone business.
As for the Zune, Ballmer said this week that consumers "should not anticipate" a Zune phone. Instead of persisting as a Microsoft-built hardware product, the device's core could eventually be integrated into other Windows-powered mobile devices, he explained."
Does this signal the death of Zune? or is it something else entirely?
We all know the true reason behind the Zune... DRM! Microsoft feared that iTunes' dominance in the online music market, would lock them out. But now that iTunes has gone DRM-free, Microsoft lost its incentive to compete with Apple in the portable media players segment.
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