And it’s not going to be getting one anytime soon, either, despite rumors that Microsoft is working on one and courting developers to port their iPhone apps over to it. Which is not to say that the company isn’t building an answer to Apple’s App Store–it is. Redmond is just building it for Windows Mobile, not Zune.

“We’re trying to get out of the business of building similar things in the company that don’t work together, and the Windows Mobile team is tackling the challenge of a mobile apps marketplace right now,” Zune marketing manager Brian Seitz told TechFlash. “We don’t necessarily line up perfectly with that, to take advantage of whatever ends up coming out of that from the Zune HD standpoint, but down the line if there’s a way that we can plug into what they’re doing, I’m sure we’ll look into whether that makes sense for the business.”

But by then, of course, it will be too late. Arguably, it’s too late already. As Apple gleefully noted during its annual music event last week, NPD pegs the company’s share of the portable media device market at nearly 74 percent. Meanwhile, Microsoft’s tops out at an estimated 1.1 percent.

Raising that share was already a Sisyphean task for Microsoft (MSFT), and it has only become more difficult now that Apple (AAPL) has introduced not just a new iPod nano with a built-in video camera and FM radio, but also a more inexpensive iPod touch.

Microsoft is pricing the 16GB Zune HD at $219.99 and the 32GB version at $289.99. But you can get a 32GB iPod touch for $299. And you can get an 8GB touch for $199. Now, granted, the touch offers only half the storage of the 16GB Zune HD, but it supports the iTunes App Store. And if you really want that extra 8GB, you can always buy an iPod nano, which shoots video and at $179.00, is $30 cheaper than the Zune HD.

Why? Well, the CLIQ, or DEXT as it will be confusingly branded in the U.K., incorporates Motorola’s new “MotoBlur” service, which essentially corrals Facebook, MySpace, Twitter, Picasa, GMail and MS Exchange activity into a single feed and presents them on your phone.

In form, the CLIQ is a sideways slider. Like the Palm (PALM) Pre, the device boasts a full touchscreen and QWERTY keyboard. It’s got a 320 x 480-pixel, 3.1-inch HVGA screen and a five-megapixel camera. The CLIQ is video-capable (play, stream and capture) and supports the broad spectrum of media formats. It runs Android 1.5 (Cupcake), and Motorola (MOT) claims a battery life of six hours.

Jha says the phone is not intended to be a single iconic device–like, say, Apple’s (AAPL) iPhone. Rather, it is the first of a broad line of handsets, all running Android and Motoblur, that will be targeted at different customer segments around the world.

A wise strategy in the current market? Who knows? But at least it’s a step in the right direction. Motorola clearly needs to do something to right itself after the past few disastrous years. Hard to believe the company controlled 16.1 percent of the global handset market just two years ago. It’s market share today? A modest 6.5 percent. The CLIQ will be sold through T-Mobile in the United States.

The device’s spec sheet below; click to enlarge.

“At the end of the June quarter, Apple was having difficulty keeping the iPhone 3GS in stock; the product seems to have exceeded Apple’s internal expectations,” Munster writes in a research note today, explaining that he sees two primary reasons for the uptick in demand.

In the first place, according to Munster, “Apple’s App Store has been a huge success (65k+ apps and 1.5b+g downloads), and app developers (like Sirius/XM, ESPN, etc.) are promoting their apps, and meanwhile providing free advertising for the iPhone platform (which spurs more iPhone sales, app downloads, and the cycle continues)….”

Second, Munster continues, “The smart phone industry has effectively crowned the iPhone and its App Store the gold standard among touchscreen mobile experiences, and competitors are trying to copy the device and its software. In so doing, the iPhone’s competitors are actually promoting the iPhone, and we believe, driving sales of the device similar to the manner in which competing MP3 players drove sales of the iPod as the gold standard in 2004 by defining themselves in comparison to it.”

Hard to disagree with that assessment given that some of the handset ads we’ve seen recently, particularly from Palm (PALM) and Sprint (S)–see ad above–which, though they insist the Pre was never intended as an Apple (AAPL) iPhone killer, can’t help but compare the two devices in their marketing materials.

“I think the whole category is still a hobby right now. I don’t think anybody has succeeded at it. And actually the experimentation has slowed down. A lot of the early companies that were trying things have faded away. So I would have to say that given the economic conditions, given the venture capital outlooks and stuff, I continue to believe it will be a hobby in 2009.”

– Apple CEO Steve Jobs, October 2008

“We still consider this a hobby. It is clear that the movie rental business has really helped Apple TV and there are more and more customers that want to try it. And we’re going to continue to invest in it, because we fundamentally believe there is something there for us in the future.”

– Apple COO Tim Cook, January 2009

There’s not much of a business yet in Apple TV, as Apple’s leadership often notes. But there may be soon, with the market for connected TVs evolving as it has been.

In a research note issued this morning, Piper Jaffray analyst Gene Munster says the time is right for Apple to release the next iteration of Apple TV–one that offers DVR capabilities and supports iTunes TV show subscriptions.

“Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee ($30 or $40 per month),” Munster writes. “Such a product would effectively replace a consumer’s monthly cable bill (~$85/month) and offer access to current and older episodes of select shows on select channels.”

Further, Munster notes, “The selection would dictate the value, and several tiers could be offered, but we see this as one way for Apple to leverage its large iTunes content library as well as its unique Apple TV hardware in order to get digital video to the TV for a price significantly less than the average cable or satellite TV bill.”

Makes great sense. And if Apple (AAPL) were to launch these services in concert with App Store support, as Munster has suggested in the past, it would be a pretty compelling proposition. And it would set the stage for the next evolution of the platform, the Apple Television, an Internet-connected TV with onboard DVR and media center functionality.

Says Munster:

“Beyond new hardware with DVR or iTunes video subscription features, we believe the 2-5 year roadmap for the Apple TV product lineup is robust. To begin with, Internet-connected TVs with interactive features will likely gain popularity in the next several years. Apple could differentiate itself in this market as a seasoned software developer competing largely with television hardware manufacturers that do not excel in the software arena. The device could also bring iPhone games, a relatively new segment for Apple, to the television.

“While this is unlikely in the near term,” Munster continues, “we believe the iPhone will succeed as a portable gaming platform and Apple may consider bringing higher quality games developed on a similar platform to the TV. The iPhone app developer community is already robust, and Apple could leverage those developers to enter the gaming arena on the TV. In fact, the iPhone or iPod touch could itself operate as a touchscreen gaming control for a game-centric Apple TV.”

Again, this makes great sense, though TV hardware is not an easy business–just ask Sony (SNE). But, as Munster aptly notes, it might be quite a bit less difficult if Apple were to “change the rules of the game,” something it’s done in a number of markets already.

That said, as Media Memo’s Peter Kafka just reminded me, the cable companies are working very closely with Hollywood to make sure it’s difficult for people to replace their cable service. They’d almost certainly attempt to sack an initiative like one Munster describes above.

Unveiled in China this morning, Dell’s (DELL) new handset, reportedly known as the mini3i, runs on China’s Open Mobile System variant of Google’s (GOOG) Android OS and sports a 3.5-inch, 640×360 capacitive touchscreen and a three-megapixel camera. It also features an iPhone-esque GUI and will support applications from China Mobile’s online store, which peddles music and videos as well as games and other apps.

But sadly, the mini3i lacks WiFi and 3G support. It’s strictly a 2G device. Odd, considering China Mobile does offer TD-SCDMA, China’s locally developed 3G standard.

That said, China’s smartphone market is wide open. With mobile phone sales in the country predicted to hit 192 million units, up from 180 million this year, according to Gartner (IT), a cheap smartphone like this could find quite a niche in the lower end of the market, assuming it’s well-priced.

News of the mini3i’s debut comes as Apple works to bring the iPhone to China via China Unicom.

On Friday, China Unicom denied a report by China Business News that the company had inked a three-year exclusive iPhone deal and agreed to purchase five million of the devices. “The report is not true,” a spokesperson said. “Talks between us and Apple have been going on for some time, but no agreement has been reached yet. There are all kinds of possibilities. There is no particular timetable for the talks.”

UPDATE: Dell claims the device displayed in China is a “proof of concept.”

“The only thing that we’re confirming is that we’re in product development with China Mobile,” he told PCMag. “We haven’t named any products, and we’re not confirming anything. We were there showing a proof of concept.

PREVIOUSLY:

• Dellephone? More Like Dullephone…
• Dude, Your Phone Is Dull
• Dellephone?

[Image Credit: mobile.163.com]

“According to reliable information, Apple will not follow the current market trend (by producing netbooks with screens about 10.2 or 10.1 inches in diagonal length.) Instead, Apple will produce screens with about 9.7 inches in diagonal length. Touch screen will be installed. Wintek will be the main manufacturer of the touch screen.”

Beyond screen size, there are no other specifications mentioned in the report. But it does include a price: $800. Which is $300 more than the $500-piece-of-junk price point Apple CEO Steve Jobs cited when he dismissed netbooks last October. “There are some customers which we chose not to serve,” Jobs said at the time. “We don’t know how to make a $500 computer that’s not a piece of junk, and our DNA will not let us ship that.”

But will it allow Apple to ship an $800 one? Perhaps something with a P.A. Semi chip? Something that runs App Store apps and offers a sort of middle ground between the iPod touch and the MacBook?

UPDATE: Piper Jaffray analyst Gene Munster just weighed on these rumors in a research note. His thoughts, below:

On 7/13 Asian media reports suggested Apple is planning a tablet/netbook in Oct-09. Last week we spoke with a Taiwanese component supplier and continue to believe that Apple will launch a tablet, not a netbook, by early CY10. … We expect [it] to be a touchscreen device in the $500-$700 range (between the iPod Touch and MacBook).

[Image Credit: Adam Benton]

That’s the word from Nokia, which vehemently denied reports this morning that it is just months away from launching its first mobile phone based on Google’s mobile OS. “There is no truth to this story whatsoever,” the company said in a statement. “It is a well known fact that Symbian is our platform of choice for smartphones.”

Indeed. It was a just a little over a year ago that Nokia (NOK) invested some $410 million in the platform, establishing the Symbian Foundation and releasing the Symbian OS as a royalty-free open mobile platform. It seems unlikely that the company would jeopardize that effort by rolling out an Android touchscreen phone at its annual conference. Even more unlikely when you consider that Symbian is by far the world’s leading smartphone software platform. It might not have as much buzz as Google’s (GOOG) Android or Apple’s (AAPL) iPhone 3.0 or Palm’s (PALM) new webOS, but Symbian still claims 47 percent of the mobile OS market.

Both devices are said to feature a touchscreen and slide-out keyboard and a “social communications” focus. Which sounds somewhat compelling, though it would probably be more so if the market weren’t already enamored with Palm’s (PALM) Pre, Apple’s (AAPL) iPhone 3GS and its $99 brethren, the iPhone 3G. That said, I suppose there’s always a chance that Motorola (MOT), using Android, could turn out a handset that apes those devices and returns the company to the glory days of the RAZR or at least points it in the right direction.

Certainly, Motorola desperately needs something like that. A weak product portfolio has already reduced its share of the handset market to 6.5 percent, about half what it held a year ago. And with the econalypse in full swing and consumer spending declining, Motorola’s prospects in the mobile handset don’t appear very promising.

Called the T-Mobile myTouch 3G, the device is similar in design to the HTC Magic, an Android device currently sold by Vodafone UK (VOD). Like Apple’s (AAPL) iPhone, it features a touchscreen but no physical keyboard. And it’s said to integrate voice-activated search, video recording and enhanced browsing, thanks to Cupcake, otherwise known as Android 1.5.

When it goes on sale, the myTouch 3G will be the second Android-based phone to hit the market from a major carrier in the states, but by the end of the year it will be one of many. Google (GOOG) expects some 18 Android devices to arrive at market this year.

“Between indications from our component contacts in Asia, recent patents relating to multi-touch sensitivity for more complex computing devices, comments from Tim Cook on the April 22nd conference call, and Apple’s acquisition of P.A. Semi along with other recent chip-related hires, it is increasingly clear that Apple is investing more in its mobile computing franchise,” he writes. “Specifically, we expect this to result in a larger (7″-10″) touchscreen tablet that will launch in 1H CY10. Additionally, Apple’s consistent message that it refuses to launch a ‘cheap’ portable netbook, and its desire to differentiate itself in a maturing market before it’s too late, plus its gradual addition of multi-touch technology to all of its core products (iPhones, iPods and Macs) leads us to conclude this product will be a touchscreen tablet.”

Munster theorizes that the device will use a third version of Mac OS X to offer a sort of middle ground between the iPod touch and the MacBook. “The device’s OS could bear a close resemblance to Apple’s iPhone OS and run App Store apps,” he wrote. “Key apps, like Safari and Mail, could make use of the larger screen resolution, making Apple’s tablet appealing for more extended use, but the company could continue to leverage its primary asset in mobile computing, the App Store, in this scenario.”

The design of that OS, however, has been time-consuming and will keep the device from market until the first half of next year. “We expect the development of such an OS to be underway currently,” Munster says, “but its complexity, along with our conversations with a key company in the mobile space, leads us to believe it will not launch until CY10.”

[Image Credit: MacBlogz]