From the Zunerama blog:"Today we unveil to the world... the iZune!", a jubilant Steve Jobs announced this morning in a joint Apple-Microsoft news conference. Sitting beside the Apple CEO was Microsoft chairman Bill Gates, who described a new partnership between the companies as "the end of the digital Cold War".
The two technology icons outlined a major partnership related to their competing digital media offerings. The announcement, taking some industry analysts by surprise, represents an abrupt shift in the strategic direction of both iPod and Zune. The pair spoke to an invited audience made up of Fortune 50 corporate CEOs, UN ambassadors, international royalty, and gadget bloggers.
Details remain sketchy, but the core of the partnership appears to be a hybrid music player dubbed "iZune". The player, to be released in the U.S. in September 2007, will play videos, slideshows, music, and games - all on a one-inch screen display. "The screen's smaller, but it's the same resolution as the larger screens," Jobs explained. "So it's a crisper image. And crisper is better." Jobs also noted that the smaller screen allows the device to have an even larger click-wheel.
Asked about the effect of this partnership on Apple's much-anticipated iPhone, Jobs indicated that Apple is re-thinking its iPhone strategy. "Our accessory-makers are a very important part of the international economy. And it's dawned on us that you can't use a touchscreen interface while the phone's in a case, or even covered by a protective screenguard. Really, it was all my bad."
Jobs also indicated that pocket-dialers - an important bloc of cell-phone users - had expressed concern that the iPhone design forces users to look at the screen in order to find and press screen controls. "Who wants to pull out a phone or music player all the time, when all you want to do is adjust the volume, or press redial?", Gates concurred. "Heck, with my Nokia I can do all that and more, without taking it out of my bomber jacket."
After the iZune announcement, Jobs embraced Gates and quipped that he was "sorry about all those 'I'm a PC, I'm a Mac' commercials". Gates patted Jobs' cheek lightly and replied "No problem, Steve. Sorry about destroying your OS business."
Outside, Macintosh supporters - evidently outraged at the partnering of the former arch-enemies - hurled paper clips and live worms at the doors leading into the closed conference.
No injuries were reported.