April 30, 2007

They're throwing FUD again!

The problem is the FUD is losing its consistency. Steve Ballmer, interviewed on USA Today's site:
Q: 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?

A: 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.

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.

So let's see. First of all, where did that 96% market share come from? Ah, yes, the Windows share of desktops, at least according to Microsoft. Fair enough. But note: that has nothing to do with the question asked. Nor does it have anything to do with his next point, which is all about the iPhone - because nobody has 96% of the cell phone OS market, least of all MS. Nor do they have anywhere near the '60-80%' he brackets his bleak prediction of iPhone market share with.

Ballmer is forced to admit that yes, indeed, that with the iPhone Apple 'might make a lot of money.' But that's not what he wants. He wants market share.

This from a man whose company just rushed a Toshiba-built DAP onto the market with a resounding whimper?

We'll see, Steve B.

Posted by jbz at April 30, 2007 7:24 PM | TrackBack

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