Ballmer on iPhone: Mr. Mojo Risin'
There’s no chance that the iPhone is going to get any significant market share. No chance. It’s a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I’d prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.”
– Microsoft CEO Steve Ballmer, April, 2007
Apple’s iPhone and Research in Motion’s BlackBerry are little more than consumer phenomena. This according to Microsoft CEO Steve Ballmer, who professes to be unimpressed by both devices. In remarks at Microsoft’s annual Strategic Update in New York Tuesday, Ballmer said that while consumers might be fascinated with Apple’s (AAPL) iPhone and RIM’s (RIMM) BlackBerry, carriers and OEMs much prefer Windows Mobile. “The truth of the matter is all the consumer market mojo is with Apple and to a lesser extent BlackBerry,” Ballmer said. “And yet, the real market momentum with operators and the real market momentum with device manufacturers seems to primarily be with Windows Mobile and Android….I think the guys who are in the best position to benefit are the guys who actually have phones at low price points,” he added. “I think that’s a distinct advantage that we have.”
An interesting market dichotomy. Too bad for Microsoft (MSFT) that the consumer market is the one spending the money. Doesn’t much matter that manufacturers would rather peddle Windows Mobile devices if their customers aren’t interested in buying them, does it? No wonder Apple recently bested Microsoft for the No. 3 spot in the smartphone operating system market.