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Sat, Nov 21, 2009 - 05:02 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Microsoft’s Ballmer: ‘No chance Apple iPhone is going to get any significant market share’
Monday, April 30, 2007 - 10:42 AM EST

Microsoft CEO Steve Ballmer was interviewed by USA Today's David Lieberman at the sixth USA TODAY CEO Forum, in conjunction with the University of Washington Business School. The interview took place in front of an audience.

One question touched on Apple:

Lieberman: People get passionate when Apple comes out with something new — the iPhone; of course, the iPod. Is that something that you'd want them to feel about Microsoft?

Ballmer: It's sort of a funny question. Would I trade 96% of the market for 4% of the market? (Laughter.) I want to have products that appeal to everybody.

MacDailyNews Take: Like the Zune? Note how Ballmer substitutes Windows vs. Mac market share when asked a question about iPod and the upcoming iPhone. It's Apple that dominates the music market, not Microsoft. Recognizing that fact, it's obvious that Ballmer gives "sort of a funny answer," as he certainly would trade the Zune debacle for Apple's iPod+iTunes in an instant.

Ballmer: Now we'll get a chance to go through this again in phones and music players. 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.

In the case of music, Apple got out early. They were the first to really recognize that you couldn't just think about the device and all the pieces separately. Bravo. Credit that to Steve (Jobs) and Apple. They did a nice job.

But it's not like we're at the end of the line of innovation that's going to come in the way people listen to music, watch videos, etc. I'll bet our ads will be less edgy. But my 85-year-old uncle probably will never own an iPod, and I hope we'll get him to own a Zune.


Full article here.

MacDailyNews Take: Ballmer plays fast and loose with the truth. He can "prefer" to have his crap software in "60% or 70% or 80%" of so-called "smartphones," but in reality, he has but 4.6%.

Canalys worldwide total smartphone device market - market share Q4 2006:
Symbian - 72.5%
Linux - 16.9%
PalmSource - 2.0%
Microsoft - 4.6%
RIM - 3.8%
Others - 0.2%

Ballmer's 85-year-old uncle will probably never own an iPod because he's related to Steve Ballmer, not because of anything to do with merits of the device. In the relatively small market of 85-year-old uncles, we'd venture to guess that Apple's iPod dominates that market as thoroughly as it does all other demographic groups.

We have iCal'ed Mr. Ballmer's statements for future reference.

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Apr 30, 07 - 09:45 am Comment from: Macaday

As if we belive anything that spurts from this man's mouth...

Apr 30, 07 - 09:46 am Comment from: Christopher Powers

Yeah but can his 80+ year old uncle actually WORK a smartphone?? An iPhone yes, but not a smartphone.. Not to mention the Zune...

Apr 30, 07 - 09:47 am Comment from: TowerTone

I wonder how often Fester let's his uncle out of the cellar...

Apr 30, 07 - 09:49 am Comment from: Chris

I think you mean "squirts" from this man's mouth...

Apr 30, 07 - 09:49 am Comment from: R

Considering that Steve said Apple's looking for 1% of the market, Ballmer just doubled/tripled iPhone's reacxh. Good show, dorko. I agree with you for once.

Apr 30, 07 - 09:49 am Comment from: toonie

Getting 3% of the cell phone market would make the iPhone a huge success.

Apr 30, 07 - 09:52 am Comment from: YankInOz

Please tell me in 10 words or less what this man knows about marketing and innovation!!!

Class!!!! - He has none. If he wasn't so damned defensive about everything APPLE  then he may have over the years that he has had a chance at playing CEO actually gets some brains in his cavity.

Phuquen idiot!

(ATTENTION PERFECTIONISTS: please pardon any dyslexia mistakes and late night additios via Brisbane.) raspberry

Apr 30, 07 - 09:54 am Comment from: NINEboy

what a bonehead

Apr 30, 07 - 09:55 am Comment from: Jamie

Steve Ballmer = The Ultimate Prick

Apr 30, 07 - 09:58 am Comment from: therepguy

Did this a-hole say about the same crap about a little product called iPod just before it hit the street a few years ago - and we all know what happen to that products.

I'm thinking the folks at M$$$$ live in there own little world and it has little to do with the real world!

It lone past time for the rest of us to move on and away for M$$$$'s crap!

Apr 30, 07 - 09:58 am Comment from: M.X.N.T.4.1

Even if Ballmer's figures were right, the thing is that Microsoft need those sort of levels to maintain an equilibrium. The only way they can profit in a market is if they have a self maintaining monopoly. Anything else and it gets subsidised by their Windows and Office profits. Even the XBOX which has sold OK isn't turning a profit. Apple can profit massively from single digit shares and ever more so once those levels increase. To start with, Apple will probably look at the iPhone in the same way they do the Mac, if it's not as dominant as the iPod they won't be overly concernved since they'll have factored that in.

Apr 30, 07 - 09:59 am Comment from: zune to be gone

Can't wait to see Ballmer eat these words......

Crow tastes good... and he should know. Between Him and Bill they eat a lot of shite.....

Apr 30, 07 - 10:00 am Comment from: Investor

2%-3%!?!

Wow Ballmer, you're doubling or trippling the estimates that Jobs has been talking about. Jobs is only looking for 1% of the market.

Sounds like Ballmer is expecting MASSIVE sales of the iPhone.

Apr 30, 07 - 10:01 am Comment from: Edgy

Ballmer is such an idiot: " 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.

Umm, you say they may make a lot of money, but then try to say that their marketshare won't be good? I guess he isn't paying attention to what's happening on the computer side of things either. Mac computers have a small (but every growing!) marketshare, and Apple is already making a lot of money there. Jobs has already said that 1% for the iPhone would be great. It's all about them making a lot of money, not bragging rights. Apple is already doing wonderful with their "small" marketshare. As this continues to grow, Ballmer will realize just how good Apple is at hitting their margin targets and being profitable. If Mac marketshare doubles (which would still be "small" according to Ballmer's "logic") and the iPhone really does get 3% market penetration, I will be one VERY happy shareholder.

I'm shocked they haven't demanded Ballmer's resignation yet. He obviously has no idea how the business he is in actually works.

MW: believe - how appropriate!

Apr 30, 07 - 10:02 am Comment from: M. T. MacPhee

"But it's not like we're at the end of the line of innovation that's going to come in the way people use computers, do speadsheets, etc. I'll bet our ads will be less edgy. But my 85-year-old uncle probably will never own Vista, and I hope we'll get him to own OS X."

Apr 30, 07 - 10:02 am Comment from: TZ

M$ is dying . . .it got Steve Emballmered

Apr 30, 07 - 10:03 am Comment from: Canalys

Peter Knook, head of Windows Mobile division at Microsoft, announced that Microsoft was installed in 6 million phones (including smartphones and wireless pocket PC) sold during FY 2006. The phone market for 2006 was approximately 1 billion units. The market share of Windows Mobile was therefore 0.6%. To reach 60% would require 100x what they are currently selling. They've been trying to move the needle for 4 years. (The launch of Windows Mobile for Smartphones was in October 2002.) Chances are that iPhone will outsell Windows Mobile in its first year. Ballmer lies.

Apr 30, 07 - 10:06 am Comment from: Whatever

What a bloody liar.
First: M$ does not have 96% market share of anything...
Second: The iPhone will be a huge success.
Third: M$ is the one who's doomed regarding music technology. There is no way in this world that the Zune will become a successful product. No way. None. Zilch. Nada.

Apr 30, 07 - 10:07 am Comment from: Chris

Oh please, please, please, let Ballmer stay right where he is! As long as he heads Microsoft, there will be smooth sailing for Apple.

Apr 30, 07 - 10:09 am Comment from: Reality Check

I just love Monday morning entertainment. Thanks Monkey-boy for providing the laughter.

Apr 30, 07 - 10:11 am Comment from: Peterson

I saw "The Blob" once.

Apr 30, 07 - 10:11 am Comment from: maczealot

Microsoft shareholders' big empty feeling begins to worsen.

Apr 30, 07 - 10:12 am Comment from: Ballmer's Uncle

Actually, I do have an iPod but we hide it in the sideboard and leave a broken Zune (which a friend gave to us) lying around when Steve comes to visit. It's best this way as it avoids embarrassment all round. Please don't tell him that I told you this though as he once threw my rocking chair through a window when I said I was thinking of buying an iMac.

Apr 30, 07 - 10:13 am Comment from: macview

Who said the brain dead can't be funny!

Apr 30, 07 - 10:13 am Comment from: Drunk Cheney

But my 85-year-old uncle probably will never own an iPod, and I hope we'll get him to own a Zune.

Dude- if you can't get your family members to own your product you really do suck.

A Side note = I was looking at a Urinal the other day and noticed that the name of the contraption was call a ZURN. Hmmm.... maybe that is where the whole naming of ZUNE came from and possibly the "squirt" reference. Just maybe?

Apr 30, 07 - 10:17 am Comment from: animac

From the Mac OS X dictionary :

Denial : "Psychology : failure to acknowledge an unacceptable truth or emotion or to admit it into consciousness, used as a defense mechanism : you're living in denial."

Apr 30, 07 - 10:19 am Comment from: JadisOne

No wonder they are doing horribly - their CEO can't tell the difference between 4.6% and (60% or 70% or 80%). Their most recent quarterly report most certainly does not reflect them having sold licenses to be used on over 780 million phones. Plus, that 20% rounding error he loves to make shows that he doesn't quite understand basic statistical analysis. His numbers would have you to believe that every person in the United States has at least two Windows-based phones. I don't know about you all, but my phone (or any of my friends) does not have Windows on it. So, Mr. Ballmer, where exactly are you getting those percentages of handset OS market share numbers? Oh, that's right, your ass.

Apr 30, 07 - 10:21 am Comment from: Holy Mackerel

And people complain about Steve Jobs' "Reality Distortion Field"…!

Apr 30, 07 - 10:23 am Comment from: John C. Randolph

I have a friend who has a phone with Windows Mobile Whatever on it, and he's going to get an iPhone the day they become available. Apparently, it's irritating as hell when a phone crashes during a call.

Ballmer needs to give up the posturing, and get his products fixed.

-jcr

Apr 30, 07 - 10:25 am Comment from: John C. Randolph

One other thing: I had no idea that Symbian had 72% of the market. Well done, Symbian!

-jcr

Apr 30, 07 - 10:28 am Comment from: JadisOne

@ Ballmer's Uncle,

You have a witty sense of humor. You are most definitely a Mac user and related to Ballmer by marriage only.

Apr 30, 07 - 10:30 am Comment from: Grrrilla

All I'd like to point out is that he's suggesting that his 85year old uncle should get a Zune instead of an iPod. Is that because it's easier to use? Or because it will let his uncle 'join the social' with it's wifi beaming feature?

Either way, it's nonsensical.

Apr 30, 07 - 10:31 am Comment from: BobM

My 85 year old father owned a 1st generation iPod and it was a delight to see how much he enjoyed it for the last few years of his life.

Apr 30, 07 - 10:31 am Comment from: nani

http://www.zurn.com/pages/catalog.asp?OperationID=19

Apr 30, 07 - 10:33 am Comment from: informed

Ballmer must be a graduate of Regent University. He has a republican's way of selling his untruths.

Apr 30, 07 - 10:33 am Comment from: Georgy Porgy

Since you were using numbers and percentages, Ballmer, what percent of 85 yr. olds even buy any computer or music related device? I thought so.
I ask MDN to document statement about iPhone marketshare the same way Michael Dell's statement was documented. It will reoccur in a few years.

Apr 30, 07 - 10:36 am Comment from: JQ

I recon Apple should send his Uncle an Ipod just to tick Ballmer off!

Apr 30, 07 - 10:37 am Comment from: Harry

Even when he is right the approache of his company M$ stinks !

Apr 30, 07 - 10:47 am Comment from: Geneologist

Ballmer's uncle is also his father.

Apr 30, 07 - 10:47 am Comment from: rancher

What say we get Mr. 85 year old uncle's address - take up a collection and send him an iPod - a nano would be fine.

Apr 30, 07 - 10:49 am Comment from: One guy from Finland

Sell all the M$oft shares what you have and invest the money to AAPL. M$oft is going down.

Apr 30, 07 - 10:51 am Comment from: ApplePi

There is really no way out for people like Steve Ballmer. What is he supposed to do? Answer, " Yes our ass is getting nailed to the wall in every respect to our business!" the best thing he can do now is to lie as much as possible and try to maintain a percieved vision of Microsoft as a leader still...

Apr 30, 07 - 10:52 am Comment from: ChrissyOne

"There's no chance that the iPhone is going to get any significant market share. No chance."

Really? None at all? Why would you say such a thing if you weren't scared out of your shiny bald pate?
I can see him pouring over the numbers, his jutting, simian brow pinched in concentration, tongue lolling casually out one corner of his mouth, sweat dripping from his ape-like chest.
"No chance!!!" he exclaims, reaching for another peanut-butter and banana sandwich.
What does this tell us about the man that is Steve Ballmer? Do you mean to tell me that you honestly find no threat whatsoever in the iPhone? When the wave breaks, and the iPhone sells millions upon millions of units, will this catch you completely off guard? Will you blame everyone around you for your shortsightedness? That will be a bit of a stretch, because here we are, trying to tell you, vociferously, that your strategy is in deep, deep trouble.

No Chance!

I'll remember your words, Mr Ballmer. You'll be hearing them again very, very shortly.

-c

MW: 'process' (does not equal success)

Apr 30, 07 - 10:55 am Comment from: MacRaven

As long as the light bulb in his mouth keeps coming on, the one over his head is never going to light up.

Apr 30, 07 - 10:56 am Comment from: freakshow1

Microsoft Innovation:
http://www.mcmillan.cx/innovation.html

Has he even used Widows Mobile. What a convoluted mess. No defending that piece of garbage. None what so ever.

Don't know about the Zune. But sales say it all.

Apr 30, 07 - 10:56 am Comment from: Field Marshal Fanshaw-ffolkes

ApplePi: There is really no way out for people like Steve Ballmer.

A tent, a table, a glass, a bottle of cognac and a pistol.

Apr 30, 07 - 11:01 am Comment from: MacRaven

That's it! Now Ballmer's even copied Steve's "Boom!" There is nothing sacred left to copy.

Balllmer in article: "OK, well, I'll go add somebody to help me with that; boom, let's go do it."

Apr 30, 07 - 11:02 am Comment from: MacBill

Everyone at Microsoft is a frickin' liar, incapable of producing anything of any quality. This is just more testament to that fact. Also, the fact that Ballmer (and most of the business world) is obsessed with market share goes to show that most companies truly don't care about quality & truly don't care about the experience that consumers have with their products.

Apr 30, 07 - 11:05 am Comment from: Crabapple

Mac o'lytes, Please give Mr. Balmer a break! How can you expect him to bite the hand that feeds him?

Not even a wild animal would do that, unless by eating the hand & therefor the owner of the hand it doesn't matter because it has a secret stash of nosh to keep it going until the opportunity to hunt avails itself.

Apr 30, 07 - 11:05 am Comment from: megaMe

Please explain to me how this guy can be the CEO of Mircrosoft?

Seriously.

Apr 30, 07 - 11:09 am Comment from: DogGone

What Ballmer forgets is that Apple generally makes a profit out of everything they do. Even the iTS service makes a profit, which now is become more significant with burgeoning music sales.

The point being is that Apple pay off their R&D;and marketing very quickly and can reap the benefits in a shot time.

Selling to 1% of the phone market would add 20 % to the iPod share and siginificantly add to their profit whilst opening up a completely new segment.

MW "planning" - a word Ballmer doesn't understand

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