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.
Related articles:
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
most expensive phone ever on the market ….or… cheapest portable Mac on the market..
Let’s wait and let Ballmer figure it out..
The look on his face.. man.. he’s pissed
No respect for MS at all. Ouch.
You have to wonder how much Apple is paying that yo-yo. After Apple buys Microsoft, Steve Ballmer will probably have trouble getting a job sweeping floors.
You have to wonder how much Apple is paying that yo-yo. After Apple buys Microsoft, Steve Ballmer will probably have trouble getting a job sweeping floors.
You have to wonder how much Apple is paying that yo-yo. After Apple buys Microsoft, Steve Ballmer will probably have trouble getting a job sweeping floors.
Zune getting traction? I took a look several times today at Amazon.com and NONE of the Zunes show up in the Top 100 Bestsellers for Electronics. What kind of traction is that? Balmer is such a load!
EXCUSE ME! Expensive?
How about this?
HP iPAQ hw6945 Mobile Messenger $599.99 Unlocked from HP.com
Here’s the cnet review
http://reviews.cnet.com/HP_iPAQ_hw6945_Mobile_Messenger/4505-6452_7-31763227.html
Come on now, people. Monkey Boy Ballmer is using karl Rove’s tried and true technique:
“Keep repeating the lie until people swallow the load as truth.”
It got W elected and re-elected; i can work for Monkey Boy, too.
MWL “values” as in “he ain’t got none…”
Laugh Ballmer laugh. Your words are on record. Pray that you don’t have to eat them.
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 why didn’t any of your “great” Windows Mobile devices get international attention during CES, like Apple’s iPhone did?
So why don’t those “very capable” machines have any buzz?
So why doesn’t every kid have one of your phones dangling next to their iPod?
Wait, I’ll answer: because there’s no such thing as cheap class. It takes more than discount prices and mishmash hardware to make a hit. Phones aren’t PC’s.
dropped call:
it’s Microsoft’s checklist routine..
as long as something is done, is enough.. .do something with mediocrity and consider it in the bag. That attitude will always be their downfall..
it doesn’t appeal to business customers because it doesn’t have a keyboard which makes it not a very good email machine.
First, Blackberry has that market.
Second, I don’t get the notion of TYPING on a PHONE. Why not pick it up and make a call?
Third, iPhone renders cellphone keypads obsolete. From here on out it’s either touch or handwriting.
And last but not least, as backwards as Ballmer is he prolly thinks a “business” iPhone also needs an 800k floppy drive, a DOS prompt, and a PS/2 mouse…
Zune Tang, where are you? You need to defend the monkey man.
“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?”
THANK YOU. Actually, I have irritated many, many people pointing out just this fact. This is all the proof you need that price is NOT a barrier to a great product. Not even an *okay* product.
the ballmer family started
when uncle fester farted
the children are retarded
the ballmer family…….
Ballmer gets it.
Your potential. Our passion.
Ballmer: Uh, Uh, hmm, Uh…Doh!!! So much stuttering to say nothing substantial in his company’s defense. That’s just sad, NEXT!
Twenty percent of the market for MP3 players $249 and up? What a flat-out LIE. They didn’t sell one of these for every 4 high-end iPods. Not even close. If you’re going to make numbers up you should send a flunkie to do it so you can claim later he spoke out of turn. Sending your CEO is pretty pathetic.
Oh, making fun of Zunes, my favorite. My sister got a Zune for Christmas, only because she hates Apple (her crazy boyfriend has brainwashed her into thinking Apple makes products that don’t function). My favorite joke with it is “Welcome to the Social…of 5 people worldwide…wait, now it’s 6 cause you have one!” And not to toot my own horn, but i think I’m right there. I haven’t seen ANY people in public with Zunes, other than my sister, who actually likes the piecer. Anyway, just thought you people would like my joke…
The fact that the iphone will only rely on touchscreen is seriously limiting its email capabilities……your fingers need feedback. PERIOD.
The iphone is cute, user friendly but for corporate usage it cannot seriously compete with Blackberry , symbian and windows mobile phone …..if you add the price tag….good luck!
cheers
“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.”
Liar, liar, pants on fire. The Zune has dropped out of the top 100 electronic devices. Creative, SanDisk and of course Apple are selling MUCH better than Zune. At best the Zune took an order of magnitude LESS than Ballmer quotes, meaning 2% of the market, and dropping. Yawn.
Guess we’ll all be laughing at Ballmer when the Zune fails to reach the 1 million unit sales by July. What a dope, as usual.
i would gladly trade places with ballmer, including that ugly mug & body for that kind of dough.
Yeah, but he has to use Windoze, which makes his quality of life lower than ours. Plus his kids are stuck with Zunes.
Either he’s stupid or crapping his pants…
Ah Zune Tang, you are funny.
“Ballmer gets it.
Your potential. Our passion.”
Yeah. Where are the sales records for the Zune? And how is that Vista haul-out going? How many exploits now?
I predict in a year’s time Apple will have at least 5% market share of mobile phones sold.
The pre-order que is through the roof – everyone I have spoken to, even anti-Apple Nerds (Simon Wilding – rofl!) say they will buy one.
It makes me laugh, alot of people who are working in the mobile internet business have such an anti-innovation attitude – it’s laughable.
Maybe they think there work they are doing is obsolete (which everyone know it is because technology is moving so fast!).
To them I say – suck this!
Apple HAS CREATED THE CONVERGENCE DEVICE! THAT NO OTHER COMPANY COULD EVER MAKE – GET USED TO IT SUCKERS.
ROFL…
How can a stupid guy like him becomes a CEO?
“Microsoft has sold billions and billions of phone, Apple zero” errrrrrr because Apple is not yet selling phone, DUMBASS?
“iPhone is not a good phone because it doesn’t have a keyboard” even more stupid.
“Now, we have Zune it’s better than iPhone” They’re of different product category, you morron!
etc etc
Apple may not have sold a phone, but in a few years every phone sold will emulate the iPhone.