Los Angeles - Microsoft is developing a new version of its Zune portable music and media player that doubles as a cell phone -- in direct competition to Apple's recently announced iPhone -- according to CrunchGear, a TechCrunch Network blog.

"Our tipsters inform us that Microsoft execs are in meetings today hammering out details of the device and developing strategies and timescales for its release," CrunchGear wrote.

Among rumored features are that the device will use an interface similar to the current Zune player's; that it will be able to connect with the Xbox 360; and that the Zune phone is tentatively scheduled for release in the fall of 2007.

Apple is set to ship the iPhone in June.

Related Links:
http://tinyurl.com/2bwgf4 (CrunchGear)
http://www.zune.net