Zunescene reports that Nokia is working with Microsoft’s Zune team to integrate its ‘Marketplace’ content within Nokia’s smartphones. The joint development is reportedly focused on content delivery, rather than the prospect of a Zune ‘mobile’ device. Microsoft has always denied the possibility of launching Zune phone hardware. Initially released in November 2006, Zune is a brand of digital media players and services from Microsoft that includes portable media players, client software, and the Zune Marketplace online music and video store. Its primary competitor is Apple’s iPod and iTunes.

The report notes that “the interesting thing about the Nokia Zune partnership is that Nokia does not support Windows Mobile.” In contrast, Nokia has to date supported every operating system other than Microsoft’s own Windows Mobile platform. ITProPortal.com adds that Nokia already offers multimedia content through its Ovi service and it is “likely” that the Nokia/Microsoft deal is a non-exclusive one. The unconfirmed Zunescene report gives no specific details on development and production timelines for the rumoured deal. The report follows separate speculation in the UK press last weekend that Apple is planning to launch a ‘Nano’ version of its iPhone in time for Christmas, to be reportedly offered by O2 UK.