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Microsoft CEO Ballmer: Apple’s iPhone and Mac will lose
Friday, September 26, 2008 - 11:03 AM EST

During a dinner Thursday at the Churchill Club in Silicon Valley when "asked about smartphones, Microsoft CEO Steve Ballmer said Nokia, Research in Motion and Apple will all lose out as the market expands over the next five years, because they design their own proprietary hardware and tie it closely to their software," James Niccolai reports for IDG News Service.

"Nokia leads the smartphone market today with about a 30 percent share, he said. 'If you want to reach more than that, you have to separate the hardware and software in the platform,' he said," Niccolai reports.

MacDailyNews Take: Like with PlaysForSure vs. iPod+iTunes?

"In other words, he thinks the same strategy that helped Microsoft become the leader on the desktop -- licensing its OS for use by other hardware makers -- will let it win out on smartphones. Long term, he said, the battle will be between the Symbian OS (which is now open source), mobile versions of Linux and Windows Mobile," Niccolai reports.

MacDailyNews Take: What allowed Microsoft to take the PC market was the absence of Steve Jobs at Apple combined with the one-time luxury of a poorly written contract signed by an unprepared sugared water salesbozo which allowed them to poorly rip-off Apple's Mac ad infinitum. Microsoft will not have the same luxury this time. Apple has over 200 iPhone-related patents that Steve Jobs has publicly-stated Apple plans to vigorously defend.

We've been pushing the state-of-the-art in every facet of design... We've been innovating like crazy for the last few years on this and we've filed for over 200 patents for all of the inventions in iPhone. And we intend to protect them. - Steve Jobs, January 9, 2007

Niccolai continues, "Apple won't boost its share of the personal computer market or become a threat in the enterprise for similar reasons, according to Ballmer -- because it won't license its software to others. 'Apple's a good company, I won't take anything away from them, but they have a certain kind of strategy. They believe in putting the hardware and software together, they don't believe in letting other people make it.'

MacDailyNews Take: And therefore, it actually works for the users instead of against. Which is why Microsoft and Ballmer dumped PlayForSure to try to, once again, copy Apple by "putting the hardware and software together," with the Zune. Related: Microsoft tries to match Apple’s vertical approach - October 11, 2006. And Apple is already significantly boosting its share of the personal computer market, dummy.

Niccolai continues, reporting that Ballmer also said, "I'm not saying there isn't a threat' from Apple, he said. But if Microsoft and its PC partners 'do our jobs right, there's really no reason Apple should get any footprint in the enterprise."

Full article here.

MacDailyNews Take: Such a fundamental lack of understanding of major markets in which his company competes should be appalling to not only shareholders, but... uh, we mean: May Ballmer remain Microsoft's CEO for as long as it takes!

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Sep 26, 08 - 10:09 am Comment from: minime

Ballmer is a great asset...for Apple.

Sep 26, 08 - 10:09 am Comment from: Mr. Reeee

Ballmer should keep his gaping pie hole shut and stay in his cave.

I'm convinced that Ballmer's mouth is really his rectum, because only diarrhea seems to pour out of it.

Sep 26, 08 - 10:09 am Comment from: megaMe

I love this guy.

I use to get mad, now I just laugh

Sep 26, 08 - 10:10 am Comment from: stormy

When was the last time Ballmer was right? Lets just hope he remains with M$ forever.

Sep 26, 08 - 10:10 am Comment from: Dev Singh

Ballmer is a salesperosn. That´s it. And a liar, and maybe a bit borderline- So what ? Huh?

Sep 26, 08 - 10:12 am Comment from: John Gee

He leaves the door conventiently wide open to blame his partners when separating the hardware and the software fails to stop Apple. And that's when M$ will have their hardware&software;boxes ready.

How can he make these arguments anyway with the Zune strategy opposes this?

Sep 26, 08 - 10:13 am Comment from: iPhone User

"I'm convinced that Ballmer's mouth is really his rectum, because only diarrhea seems to pour out of it."

Thanks Mr. Reeee, now I'm gonna have that visual with me all day...

Sep 26, 08 - 10:15 am Comment from: Original Shiva

He reminds me of certain politicians that we all know. Develop a philosophy, run with it, see it doesn't work, and continue to insist on it for everything. But that is all based on greed and power for the politicians. I'm sure Mr. Ballmer is different though...

Sep 26, 08 - 10:16 am Comment from: PeterJ

He's so clueless. I really get a kick out of stuff he says. How did this guy become so important? It's mind-boggling.

Sep 26, 08 - 10:16 am Comment from: Monk VanDu

And with Win Mobile 7 delayed until at least late NEXT year, wow, I can't imagine how far behind they are going to fall in the smart phone wars.

Sep 26, 08 - 10:18 am Comment from: Berrylium

What? Burning? You say Rome is burning? Get outta here! I have a fiddle to play!

Sep 26, 08 - 10:18 am Comment from: Connor MacBook

Today's more savvy consumers don't fall for bad copies like they used to ..

Sep 26, 08 - 10:19 am Comment from: Jubei

He's counting on MS monopoly to wear our the competition in the long run. Thats not fair competition in the market.

Sep 26, 08 - 10:19 am Comment from: Jamie

I love Balmer. I hope he stays as CEO of Micro$oft forever!

Sep 26, 08 - 10:21 am Comment from: Mo

Does the consumer really care if something is open source or if it's proprietary? If the product provides excellent quality, good looks, high performance, superior usability and great user experience then what does the consumer care? For those that do care, like programmers, web developers and so on, Apple is very standards compliant and does embrace open source. This is open source at it's best.

Sep 26, 08 - 10:21 am Comment from: flappo

ballmer was probably hired as the night's entertainment

the juggler , acrobat and sword swallowers couldn't make it

so they got the booby prize

and ballmers is most definitely a prize booby

Sep 26, 08 - 10:22 am Comment from: iDon't

Ballmer is cute in a monkey boy sort of way.

Sep 26, 08 - 10:22 am Comment from: Julius

Ballmer is pure entertainment, both audibly and visually. What a nut! He should be the clown that comes to my kids school.
It is amazing that dividend hungry shareholders will never hold him accountable. At least RIMM shareholders will at least make a statement.
When M$ does fall, it will fall hard and quickly.
Shareholders will completely desert them not if, but when this time comes.

Sep 26, 08 - 10:24 am Comment from: Nick Fury

What he really said was a long string of grunts, tongue flicks, clicks and moans. Once he's finished squirting a sentence, an assistant makes her best guess.

Sep 26, 08 - 10:24 am Comment from: MidWest Mac

@ Mr. Reeee

Gross, dude.

Sep 26, 08 - 10:26 am Comment from: Julius

And as the water was up to the neck of the captain of the Titanic, he shouted..."This ship is unsinkable".

Sep 26, 08 - 10:26 am Comment from: Curiouser & Curiouser

Ballmer also said, "I'm not saying there isn't a threat' from Apple,

Let's take out the negatives in this sentence...just for fun.

"I'm saying there is a threat' from Apple."

So little ole no market share, niche player, proprietary, Apple is a threat to M$.

Sep 26, 08 - 10:30 am Comment from: Swing Geezer

Now. C'mon guys. What do you expect Ballmer to say? The truth? "We have made big mistakes and seem to be continuing to make big mistakes. We don't "get it". We don't understand what's happening, and we don't give a sh*t!"

He's not going to say that! He's going to try to spin and weave and dodge.

Unfortunately, he can spin, weave, or dodge well enough to avoid looking like a doofus to everyone who knows the truth. Sadly, the media doesn't seem capable of doing any research to evaluate the veracity of his statements!!

But I'm not bitter!

Sep 26, 08 - 10:31 am Comment from: Missy Pants

"Ballmer also said, '... But if Microsoft and its PC partners 'do our jobs right, there's really no reason Apple should get any footprint in the enterprise.'

So Ballmer's pretty much guaranteed that Apple won't just get a "footprint in the enterprise", Apple will totally rule enterprise.

Sep 26, 08 - 10:32 am Comment from: Swing Geezer

Oops,
paragraph 3 line 1 should be "can't".

gotta proof better. wink

Sep 26, 08 - 10:33 am Comment from: john

Apple already has a footprint, Mr.bozo ballmer, check your ass!
and since Apple tends to aim high, the next one will be a roundhouse to your head. No chairs here bozo, you lose!

Sep 26, 08 - 10:34 am Comment from: Predrag

Can anyone here tell me what exactly could have (or should have) Ballmer said? Keep in mind, Ballmer is a CEO of a most powerful tech company in the world, that thoroughly dominates the desktop OS world, which is just huge today. There is no way someone in such a position could afford himself of elevating a competitor by saying that they are worthy, doing something right and that his company should re-evaluate strategy. Ballmer said the only thing he COULD say in his position. And as John Gee says, he allowed that one "IF", by putting the onus partly (if not squarely) on the hardware makers. Even that one might stand to be incorrect, if Android proves to be successful against Winmobile, Symbian, Palm or RIM. After all, G1 (the first Android) is made by HTC, which has already been selling WinMobile devices for quite some time.

Obviously, if this were to happen, Ballmer will have something else to say in defense of his MS strategy.

It is clear that good tech companies cannot stay good when sales people take over, as Jobs had said many times. May Ballmer run Microsoft until he dies of very, very old age...

Sep 26, 08 - 10:35 am Comment from: ralph from berlin

the business-model of windows mobile has become obsolet. which handsetmaker will pay 15$ for a license if they can get better OS like android and soon symbian 60 with more possibilities for differentation (proprietary services on top) for free? me guess: no one. the delay of windows mobile 7 until the secons half of 2009 won't help. by then it will be doa.

Sep 26, 08 - 10:37 am Comment from: hagar57

"But if Microsoft and its PC partners 'do our jobs right,..."
Yeah, but that's the problem, Ball me-Boy, you're not doing your job right. You're falling behind, software side, and hardware side you don't even get a foot on deck.
'And he who is first will later be last,
for the times, they are a-changin'!'

Sep 26, 08 - 10:37 am Comment from: franky

What a crapper.
Laughing my ass off. grin

Sep 26, 08 - 10:38 am Comment from: john

microsoft's partners.... let's see...
Dell selling off plants, downsizing dramatically, HP developing it's own OS, who are MS's partners?
mdn magic word.. meet, as wait till enterprise meets Mac OS X!

Sep 26, 08 - 10:46 am Comment from: turbowv

“…there's really no reason Apple should gain any footprint in the enterprise.”

Reading between the lines, is Ballmer making a Freudian slip? Has he already psychologically ceded the consumer market, and staked out the enterprise as their last line of defense?

Strange, I keep getting images of Custer and the 7th Calvary....

Sep 26, 08 - 10:46 am Comment from: The MacDaddy-Oh!

"Ballmer should keep his gaping pie hole shut and stay in his cave.

I'm convinced that Ballmer's mouth is really his rectum, because only diarrhea seems to pour out of it."

Don't you mean "squirt?"

Sep 26, 08 - 10:48 am Comment from: iJah420

I could not resist...

Just 4 old time sake.

http://video.google.com/videoplay?docid=-4860483760049380308

WoOOOOOOOOOOO MSFT!!!!!

DEVELOPERS DEVELOPERS DEVELOPERS!!!!

JUST LOL as to the state of MSFT..... What a JOKE!!

iJah420 says maybe they should retool and come up with something original... like say OH I GOT IT!!!.. the iZune YEAH iZune....... Good GRIEF!

Sep 26, 08 - 10:51 am Comment from: DH

As Mark Twain said so well ...
" It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt. "

Is there any doubt now ?

Sep 26, 08 - 10:54 am Comment from: Harvey

As a general rule, it is best not to get into a conversation with a delusional person. So whatever noise Ballmer made, I don't care.

Sep 26, 08 - 10:54 am Comment from: Modbus

In one paragraph, TGAFM compared Apple's OS sales to Windows, sidestepped the iPhone, music player and music sales markets and then dropped in search engines as a comparison.

That's sloppy and illogical trolling. Now you why paint thinner cans have warning labels about the dangers of sniffing the product.

Suck on that.

Sep 26, 08 - 10:57 am Comment from: @The Great Apple Fanboy Massacre

Yes indeed, marketshare doubled from 4 to 8% in de US and mostly due to Windows-switchers wink

Apple makes half the profits of MS now with 25% of the workforce.

Times are indeed changing...!

Sep 26, 08 - 11:01 am Comment from: Botvinnik

heh, MonkeyBoy has become the Reverend Al Sharpton ot tech. Both are hilarious.

Sep 26, 08 - 11:01 am Comment from: alansky

That bozo couldn't predict the future if he had a fricking crystal ball!!! What a clown!!!

Sep 26, 08 - 11:02 am Comment from: His Divine Shadow

PeterJ

He's so clueless. I really get a kick out of stuff he says. How did this guy become so important? It's mind-boggling.


Daniel Eran already called it: Ballmer lucked out in college roommates. That's pretty much it.

Sep 26, 08 - 11:04 am Comment from: in the monkey pen

Genuine losers always trash-talk their competitors.

Enough said.

Sep 26, 08 - 11:06 am Comment from: BA

Notice how he keeps referring to the "enterprise" and not at all to the home. That's because he knows he's getting his clock cleaned in that market. The only they have left is the enterprise.

Sep 26, 08 - 11:06 am Comment from: Chris

Ballmer is relying on a strategy that worked just great during the infancy of the micro computer industry. That strategy is proving to be a failed one now that computers are infinitely more complex, as are the security issues they face.

Microsoft will be a major force in the market for many years to come, but I'd be willing to bet that Linux will own the business world in the near future - and with that upheaval, Apple will fit in many more niches than it does today (particularly the home market).

Sep 26, 08 - 11:08 am Comment from: bon

MS will never get it. Marketshare isn't everything.

Sep 26, 08 - 11:09 am Comment from: Zune Tang®

Read it and weep, MAC lemmings. Ballmer is right.

I can build my own smartphone and customize it any way I want and it will run way more programs than the overpriced, proprietary iPhone. Dorks.

Your potential. Our passion.™

Sep 26, 08 - 11:10 am Comment from: steve516

Ballmer is like the captain of a sinking boat... Even as folks were scrambling to get off the ship he could not see a problem with how things are on his boat, or why the other boats are sailing steady.

Sep 26, 08 - 11:13 am Comment from: wow indeed

They believe in putting the hardware and software together, they don't believe in letting other people make it.

OMG. Nothing like being unable to see the forest for the trees.

I know uneducated forklift drivers who "get" Apple's business model.
Yet Ballmer still holds the top job at MS.

Sep 26, 08 - 11:14 am Comment from: Anway

Does anyone remember the name of that Iraqi reporter for the first gulf war? Baghdad Bobby or something like that, You know the Iraqi military was getting pushed back, crushed if you will, and he is out there on the airways spouting off about how the Iraqi military was pushing back the Americans.

Well I think that guy was secretly Ballmer practicing for his role at Microsoft.

Maybe?

Sep 26, 08 - 11:15 am Comment from: Mike

So he starts off by saying that Apple's strategy doesn't work, then concedes they are a pretty good company, and have been successful in a few key markets in the US, and then ends by saying they won't gain share in a market they're not even competing in.

*ding ding ding!

Shareholders revolt!..

Seriously, Apple's strategy is perfect for the consumer market. Ballmer knows it. And the only thing he can say is "we don't expect them to take over that market and start chipping away at the Enterprise market"

Pathetic

Sep 26, 08 - 11:15 am Comment from: eWorldian

Are Ballmer and George W. Bush related?

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