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Sat, Nov 07, 2009 - 08:50 PM EST  —  AAPL: 194.34 (+0.3099, +0.16%)  |  NASDAQ: 2112.44 (+7.12, +0.34%)

Microsoft CEO Ballmer laughs at Apple iPhone
Wednesday, January 17, 2007 - 04:43 PM EST

Microsoft CEO Steve Ballmer, alongside Nortel CEO Mike Zafirovski, spoke with CNBC Business News' Scott Wapner today regarding a variety of subjects, including Microsoft's Zune and Apple's iPhone and iPod:

Wapner: Steve, let me ask you about the iPhone and the Zune, if I may. The Zune was getting some traction and Steve Jobs goes to Macworld and he pulls out this iPhone. What was your first reaction when you saw that?

Ballmer: (laughs) $500 full-subsidized with a plan! I said that is the most expensive phone in the world and it doesn't appeal to business customers because it doesn't have a keyboard which makes it not a very good email machine. Now, it may sell very well or not, I, you know. We have our strategy, we've got great Windows Mobile devices in the market today, we, you can get a Motorola Q phone now for $99, it's a very capable machine, it'll do music, it'll do, uh, Internet, it'll do email, it'll do instant messaging. So, I, I kinda look at that and I say, well, I like our strategy. I like it a lot.

Wapner: How do you compete with that though? He sucked out a lot of the spotlight in the last few weeks because of what happened at Macworld, not only with the iPhone, but with the new iPod. How do you compete with that, with the Zune?

Ballmer: Right now, well, let's take phones first. Right now we're selling millions and millions and millions of phones a year, Apple is selling zero phones a year (half smile). In six months, they'll have the most expensive phone by far ever in the marketplace (laughs) and let's see (shrugs), you know, eh, what's the expression, let's see how the competition goes. In the case of music and entertainment players, Apple ob.., uh, absolutely has a preeminent position. We said we wanna be in this market, there's a lot of reasons why there's synergy with other things that we're doing, we think we've got some unique innovations - particularly what we're doing with community, with wireless networking. And, we came into the market, a market in which they are very strong, and we took, I don't know, but I think most estimates would say we took about 20-25% of the high end of the market. We weren't down at some of the lower price points, but for devices $249 and over we took, you know, let's say about 20% of the market. So, I feel like we're in the game, we're driving our innovation hard, uh, and, uh, okay, we're not the incumbent, he's the incumbent in this game, but, uh, at the end of the day, he's going to have to keep up, uh, an agenda that we're gonna drive as well.

Wapner: You still feel like you can be very competitive in that space?

Ballmer: Sure. Absolutely. If we didn't think there was transformation going on, we woudn't be playing.



Full CNBC video: http://www.cnbc.com/id/15840232?video=167100574

MacDailyNews Take: It is very evident that Ballmer has nothing. That he goes straight into FUD mode with the outright lie that Apple's iPhone is "the most expensive phone by far ever in the marketplace" shows fear. Apple's iPhone does have a keyboard, of course, as Ballmer probably knows full well; maybe not, as he seems to lack understanding about prices, DMP market share, and more.

Microsoft's Zune is a primitive device to begin with; next to an iPhone, it is even more of a joke than it is now, if that's possible. Today's so-called "smartphones" with Windows Mobile and other operating systems look like last decade's technology next to Apple's iPhone.

Ballmer can bluster all he likes with nonsense such as "we're driving our innovation hard" and babbling about some unknown "agenda" that Microsoft's supposedly "gonna drive," but he has nothing of substance to offer.

Microsoft should be embarrassed at their total lack of innovation and Microsoft should be embarrassed that they even have Steve Ballmer as an employee, much less as their CEO.

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Related article:
The massive FUD campaign against Apple’s iPhone ramps up - January 10, 2007
The Motley Fool: Apple makes Microsoft’s Zune a paperweight - January 10, 2007
RealMoney’s Comeau predicts: ‘Microsoft will kill the first Zune media player by midyear’ - December 16, 2006
Microsoft Zune plummets to 5th place in U.S. digital media player market share with 2.1 percent - December 04, 2006

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Jan 17, 07 - 04:48 pm Comment from: Light Be-er

I laughed last night when Ballmer's name followed Jobs' and Wozniak's on the ABC tv show Boston Legal as examples of technology geniuses who could save Homeland Security - i.e. "the Steves."

I thought it was HS adoption of MSFT tech that got us into this mess? Maybe OS X can get us out?

In other news - 1Bn profit on 7Bn earnings. $1.14 profit per share. Not bad for a beleagured computer company!

Jan 17, 07 - 04:49 pm Comment from: Prut prut

someone remind me..when exactly was Zune getting traction? i don't seem to recall that..

Jan 17, 07 - 04:49 pm Comment from: pieterdebecker

Make no mistake: Microsoft is a great company… no, I mean big. grin

Jan 17, 07 - 04:49 pm Comment from: wall street guy

"zune has 20-25% of the upper market"

can't CEO's get in trouble for publicly making false statements ?

get Spitzer....I mean the new guy on the phone !

Jan 17, 07 - 04:49 pm Comment from: EZ Mac

Indeed lets see how the competition goes Ballmer

Jan 17, 07 - 04:50 pm Comment from: eaxit

OK, riddle me this... When the RAZR debuted, it was a whopping 500 dollars. And it's claim to fame was simply that it's thin and makes phone calls. But the UI sucks face. Why has no one pointed this out?

Of course the price of the iPhone will trickle down once the R&D;expenses have been recouped! So I say phooie to anyone saying it's too expensive. It offers 100 more features than the RAZR ever did or does right now!

I am getting one anyway!

Jan 17, 07 - 04:50 pm Comment from: alansky

I think most estimates would say we took about 20-25% of the high end of the market.

In your dreams, Stevie Boy!!!

Jan 17, 07 - 04:52 pm Comment from: k

where does his "20%" market come from? Last I read, iPod USB cables were selling better than the Zune on Amazon.

Jan 17, 07 - 04:52 pm Comment from: loki capret

20% of what? they may have had 20% of the Brown colored MP3 market, but I even doubt that seriously!!!

Jan 17, 07 - 04:53 pm Comment from: IT guy

In that respect, Apple took 100% of the high-end computing market!

Cheers!

Jan 17, 07 - 04:54 pm Comment from: MegaMe

I love Steve Ballmer.

I laugh every time I see him. hear him or read about him.

He makes my day more enjoyable.

Sweaty Monkey Boy makes me laugh. He is the court jester. An idiot. A fool.

Jan 17, 07 - 04:56 pm Comment from: ping

someone remind me..when exactly was Zune getting traction? i don't seem to recall that..

It was mentioned in a Steve Jobs keynote - that's at least something...! wink

Jan 17, 07 - 04:57 pm Comment from: JadisOne

I saw this crap earlier today on CNBC. My wife and I were laughing so hard at this idiot. We can't believe he actually believes the words that squirt from his mouth.

Jan 17, 07 - 04:58 pm Comment from: DudeMac

The Zune doesn't have 20-25% of the market, what is he smoking? monkey turds??!

Jan 17, 07 - 05:00 pm Comment from: nittany4

20% of the Brown colored MP3 market

that's fabulous

well done

Jan 17, 07 - 05:01 pm Comment from: Harry

If a person has nothing to say, he laughs, .. in other words just to silly to think !

Jan 17, 07 - 05:03 pm Comment from: wall street guy

Ballmer is sad....so sad

And the Zune is the joke of the industry

Jan 17, 07 - 05:04 pm Comment from: Winston

This thread should be retitled, "Steve Ballmer worth $20 billion to... Apple Inc." Having that nimrod at the helm is a godsend for Apple.

In other news, it's nice to see that Zune Tang is apparently picking up some freelance work writing "talking points" for Ballmer.

Jan 17, 07 - 05:05 pm Comment from: @pt

i guess that ballmer doesn´t know what he is talking about when it comes to electronics,maybe when they are at M$ they only go to mac fan sites to see if we go down,maybe in near future M$ is going to have to begin with a new brand like Microshit,its what they always been since windows 3.1

Jan 17, 07 - 05:05 pm Comment from: flappo

ballmer should look in the mirror , that fat fsck

that'd make him laugh

pos

Jan 17, 07 - 05:06 pm Comment from: TowerTone

"The Zune was getting some traction"
Doesn't that cause skidmarks?

Anyow, I can just Ballmer sitting there, nervously answering with a slight grin/grimace, clumsily trying to juggle the steel balls in his hand and the quetions at the same time, sweat shooting out all over his head likea chia pet gone bad...desparately wanting a towel, a chair, anything to defray the reality of the moment.

Jan 17, 07 - 05:09 pm Comment from: nekogami13

Origami disaster=Virtual keyboards-so users want a physical keyboard and not the virtual one you provided?.
MS Mobile 5=Restart at least once a week(I know I have it)-so a throwback to windows 95/98 is high tech and innovative?

Hmmm, Uncle Fester should not be so jolly-Apple is coming to eat your lunch.

Jan 17, 07 - 05:12 pm Comment from: steve

laughs of my balls!!!!! shit microsoft!!!!!!!

Jan 17, 07 - 05:12 pm Comment from: triangletire

Is it my imagination, or does Ballmer sound a lot like Matt Foley "motivational speaker". Check it out.

http://www.pistolwimp.com/media/36093/

Jan 17, 07 - 05:13 pm Comment from: archidude

I hope when Ballmer laughed at the iPhone that he didn't do that disgusting thing where he sticks out his tongue:
http://blogs.msdn.com/mikewalker/attachment/1206316.ashx
Here he is again:
http://tralfaz-archives.com/coverart/N/nyref.jpg

Jan 17, 07 - 05:13 pm Comment from: Jooop

I saw a Zune in person for the first time a few weeks ago...it has got to be the ugliest, most crass consumer electronic device I've ever seen. The first-gen iPod is classier than that piece of junk. I wouldn't even want to be seen holding one.

Jan 17, 07 - 05:14 pm Comment from: KenC

Jobs is a genius. He's convinced MonkeyBoy that the iPhone is competing with his Motorola Q. In fact, it's competing with UMPCs, which cost between $1000 and $2000. Who's the idiot now?

Jan 17, 07 - 05:19 pm Comment from: Steve Jobs

Ballmer's an idiot. Most expensive phone? Has the fool seen what smarthpones cost? Has he seen what some Nokia and Sony/Eriksson phones cost? They go for as high as $800!

The man wouldn't know the truth if it bit him on the butt.

Bozo

Jan 17, 07 - 05:25 pm Comment from: lbuschjr

Just wait until the true video iPod comes out in a few weeks, with the same touch-screen as the iPhone, sells for $300, is 120MB or more, smaller and thinner than even the Brown Zune.

I think Ballmer meant 20% of the non-iPod $249 and above high-end MP3 player market. He just couldn't remember all of those conditions.

Jan 17, 07 - 05:29 pm Comment from: AlanAudio

It's good to hear Ballmer claiming that Zune accounts for 20% of the upper end of the MP3 player market.

As Apple have sold 21 million players in the last quarter, let's guess that maybe 25% of them are upper end models, so that's about 5 million.

Therefore in order to reach 20% of just the iPod market, Zune will have sold a million units, which Microsoft weren't expecting to do before June 2007.

I'm astonished that Ballmer didn't highlight this amazing achievement. Or is he just a pathetic liar who is too stupid to consider whether his lies are remotely plausible ?

Jan 17, 07 - 05:36 pm Comment from: mike k.

Ballmer is awesome. Think of boring life would be without him.

Jan 17, 07 - 05:37 pm Comment from: mike k.

insert a "how" somewhere in the above post

Jan 17, 07 - 05:42 pm Comment from: Dion

What can brown do for you? Squirt, baby, Squirt.

Jan 17, 07 - 05:42 pm Comment from: critic

I really hope that he believes what he's saying. If so, Apple should have little problem competing with MS

Jan 17, 07 - 05:48 pm Comment from: jackspratt

um...i do have to agree with Ballmer...it's one hell of an expensive phone.

it's an iPod too, though....

MDN: "stay," as in "Sit, Ballmer! Staaaaay! Stay! Good dog!"

Jan 17, 07 - 05:51 pm Comment from: ndelc

Alright Young Frankenstein's Monster, let Apple talk about innovation, and you get back to singing "Puttin' On The Ritz", huh?

Jan 17, 07 - 05:52 pm Comment from: iMat

Balmer originally used the reason, that people wouldn't want to walk around with seperate devices in their pockets, for disliking the iPod. Now that Apple has actually made what seems like the perfect device for Steve Balmer, he's pretty damn screwed :D

I do not feel sorry for him.. I feel sorry for his kids!

Jan 17, 07 - 05:55 pm Comment from: choc

I have personally only seen two, yes that's right 2, people with Zunes out in public, so I don't know how they got 20 percent of the high-end music player market.

OAN, I didn't know that Microsoft sold phones, I thought Motorola did. It is the Motorola Q running Microsoft Windows Mobile, right? Talk about misleading statements!

MW="body" as in get M$ a body bag, they're dead

Jan 17, 07 - 05:55 pm Comment from: rancher

I say we all chip in and get a nice collar and leash for him so Bill can reign him in. A choke collar would be nice. Or maybe one of those collars that delivers a mild shock. That way, everytime he starts to rattle off his phoney baloney platitudes Bill can be sitting in his office and press the big red button. It would be a joy to watch THAT TV interview.

Jan 17, 07 - 05:57 pm Comment from: bobchr

Microsoft makes a lot of money. Filthy, obscene amounts of money. Name me one human entity be it corporation, religion, Icon , mullah ....etc that is embarrassed about making lots of money. MDN you fling the wrong shame upon the 800lb gorilla. They should be ashamed of the quality of most of their products innovation aside. If Ballmer wants to laugh at the most expensive phone... how about the most expensive bloatware on the planet the Microsoft Works suite

Jan 17, 07 - 05:58 pm Comment from: Just look at his eyes!

Didn't anybody else notice?

Just look at his eyes!

It's paranoia pure!

His eyes are burning during the whole interview.

Jan 17, 07 - 05:59 pm Comment from: MrK

Maybe a dumb question, but how does M$ profit from the "...milions and millions and millions of phones..." being sold per year?

Jan 17, 07 - 06:02 pm Comment from: Huh?

I love the fact that Ballmer blasts Apple for offering a high-end phone that is too expensive to succeed, and then goes on to boast that the expensive Zune is successful because it is placed at the high end of the market.

This guy went to Harvard?

Jan 17, 07 - 06:04 pm Comment from: Ardie

Yep KenC, Ballmer just lost and monkeyboy doesn't even realize it. Ultra-Mobile PCs it would seem have been eliminated with the advent of the iPhone. And then Apple can always do a cheaper Shuffle-like version of the iPhone as a straight phone avec iPod. The versatility of the iPhone is yet to be fully utilized—it may prove to be another iPod phenomenon.

Jan 17, 07 - 06:08 pm Comment from: mike

I wish guys like Thurrot would quote the marketshare numbers "FOR THE SEGMENT APPLE IS INTERESTED IN"

If they did, it'd be about 30% lol

Jan 17, 07 - 06:09 pm Comment from: Mike

Ballmer is perhaps the most incomprehensible and ineloquent to ever be the CEO of a large corporation. It's really sad that he is their #1 guy.

Jan 17, 07 - 06:10 pm Comment from: Keithie Boy

Oh dear what an ass. "we've got some unique innovations - particularly what we're doing with community, with wireless networking". In case you hadn't noticed the iPhone has wireless built in that can actually be used for something more than squirting brown crap to another non-existent ZuneTurd. You are a bum. But I like you. You make me laugh for hours fat boy.

Jan 17, 07 - 06:15 pm Comment from: chi guy

The whole time I was wtching that I kept thinking Steve C from "the office"

Jan 17, 07 - 06:15 pm Comment from: Sinkin-Fast

Medic !!!

Mr Balmer's meds are wearing off, hurry

Jan 17, 07 - 06:17 pm Comment from: DM

Scrolling down a long list of comments, I have to ask -- where is the normal beFUDdled support from ZuneTang?

Jan 17, 07 - 06:19 pm Comment from: mike

watch closely.. you can almost see the thought bubbles...

"Shit. Apple figured out how to sell the UMPC that we couldn't give away..."

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