Steve Ballmer laughs off the iPhone, deems it "most expensive" in the marketplace

We'll be the first to give props to Steve Ballmer for accomplishing what he has at Microsoft, and we will agree that the iPhone is one expensive (and probably overpriced) little machine, but during a recent interview where he was questioned about the iPhone, he proceeded to not only compare Apple's forthcoming handset with the "$99 Motorola Q," but insisted that the iPhone was "by far the most expensive phone in the marketplace," which couldn't be further from the truth. Sure, most of the long, long list of mobile phones priced above (sometimes well above) the $500 price point aren't exactly mainstream handsets, but as the luxury phone market continues to bloom, Apple is looking to take advantage of those willing to shell out half a grand to have the hottest gizmo out. Additionally, Steve did mention that the iPhone was absolutely "not suitable for business purposes" due to its complete lack of a keyboard, but considering its half-hearted attempt at Push mail and lack of 3G, we doubt Mr. Jobs is out fighting for the corporate market just yet anyway. Nevertheless, it's always entertaining to see one head honcho completely mock another company's product, so click on through for the YouTube'd interview.

[Via Digg]

[mgourlay @ Jan 18th 2007 3:59PM]

You can actually get a Blackjack from Amazon for a whopping $9.99 after rebate.

[Sam @ Jan 18th 2007 3:29PM]

He's an idiot. Isn't he always making stupid, off-color comments with nothing to back them up? I'm not saying the iPhone is not very expensive but COME ON Microsoft, don't diss something you can't do yourselves. Makes you look REAL stupid.

[ScOObyDoo @ Jan 18th 2007 2:46PM]

I should email him the receipt for my $799 HTC TyTN. Smug bastard. This is Apples first attempt at a phone, it took Microsoft 5 years to get it (partially) right, Push email hasn't been on WM that long, 3G is pretty new to them as well.

[jack @ Jan 18th 2007 3:22PM]

why did you pay 799 for the TyTN when i paid 499 for mines at around launch(without contract and for now on paper is way better than the iphone). so take your receipt and stick in the new hole, that the store that you paid 799 for you down below your ass, made for you.

[enzo @ Jan 18th 2007 6:08PM]

He clearly said $500 subsidized, meaning $500/$600 WITH a 2-year cingular contract. I'm not sure about this but to my knowledge, no American cellphone carrier sells a phone at that high of a price with a contract.

[arteekay @ Jan 18th 2007 10:54PM]

If Job's has humbly announced their first stab at the phone market, I'm quite sure those outside the RDF would've appreciated it far more.

Humility, or better yet reality, goes a lot farther than an easily disproved set of lies.

[Rick Person @ Jan 18th 2007 2:48PM]

Look out Gene Simmons!

[Raymond from DC @ Jan 18th 2007 2:50PM]

What we're seeing is what psychologists call "cognitive dissonance". This, per Wikipedia is "the perception of incompatibility between two cognitions, where 'cognition' is defined as any element of knowledge, including attitude, emotion, belief, or behavior; in other words, it is the uncomfortable tension that comes from holding two conflicting thoughts at the same time."

So we have two "cognitions" - one, that Apple won't succeed because it's "beleaguered," it's "expensive," or "not Windows," thus doomed to failure. The other cognition is the reality staring them in the face, that Apple is an increasingly successful company, a cultural phenomenon, a trend-setter up-ending one industry after another by its contrary vision. Many industry observers, therefore, are in a deep funk, unable to make sense of these two contrary positions.

It's certainly not a phenomenon unique to technology. It applies in politics as well. Heck, one could do a whole dissertation about the role cognitive dissonance plays in the Middle-East. But that's for another topic.

[mike @ Jan 18th 2007 2:51PM]

Pure FUD.

Try innovating one time. Jerk.

[Nick McGee @ Jan 18th 2007 2:53PM]

Doesn't Microsoft sell the most expensive desktop operating systems?

[Will @ Feb 21st 2007 8:17PM]

Mac OS X from Apple.com: $129
Windows XP (WITH coupon for Vista) from Newegg: $89.99
Ability to count to numbers over 100: Priceless

Plus, it's very easy to get a cheap copy of Windows since it is in the mainstream, unlike Macintosh. I could run down to a university or something and get a copy for some low price like $20.

Please think before you talk.

[Will @ Feb 21st 2007 8:17PM]

Mac OS X from Apple.com: $129
Windows XP (WITH coupon for Vista) from Newegg: $89.99
Ability to count to numbers over 100: Priceless

Plus, it's very easy to get a cheap copy of Windows since it is in the mainstream, unlike Macintosh. I could run down to a university or something and get a copy for some low price like $20.

Please think before you talk.

[jack @ Jan 18th 2007 3:50PM]

no

[jack @ Jan 18th 2007 3:24PM]

no

[jc @ Jan 18th 2007 2:55PM]

...and besides, the iPhone just doesn't have the same threatening presence when thrown across a room, as say... a chair.

Honestly, with Bill Gates' statement that the future is mobile devices, Balmer is likely throwing chairs at himself for not coming up with somthing as sweet as the iPhone.

[Alien51 @ Jan 18th 2007 3:16PM]

Does anyone remember that the price so far on the apple phone is with the 2 year contract. So if you want me to spell it out.

It cost alot more than the price you have seen so far.

[Ross @ Jan 18th 2007 2:58PM]

This is the most useless writeup of a 'story' I've ever seen on engadget. It's all over the place. Doesn't anyone proofread this stuff?

[Rodney Sharples @ Jan 18th 2007 5:21PM]

Ross, you are one hundred and fifty per cent correct. The standard of writing on Engadget is truly appalling. Keep the faith.

[boe @ Jan 18th 2007 3:31PM]

I support over 1000 clients and many of them use the 6700 without ever sliding out the keyboard - so keyboards are not important. They selected the 6700 because of the larger screen - can't display as much on the Treo or the Q. Most of my clients DO bitch about the low resolution and the HUGE BRICK that the 6700 is. The Q shows us that you could make a full OS unit none of that "smartphone" crap like the Q. It has a touch screen with a much higher res than 95% of the pda phones on the market. It is much slimmer than about 75% of the PDA phones on the market but isn't gimped without touchscreen like the "smartphones". While the smartphones are slimmer than the full WM5 PPC phones, they don't have touchscreen and can't run all the apps that the full WM5 phones.

The Iphone has the full OS with full touchscreen capabilities.

I do agree that the iPhone will need to support full e-mail push for it to be what my clients want though.

While I don't know if the iPhone will be right for the business market without push e-mail I hail it's release as good for the industry as it will start manufacturers such as HTC to start thinking outside the box and making THINNER units (11mm - the new benchmark) that have the full MS featureset including touchscreen. Hopefully HTC will think about higher resolutions screens like the iphone as browsing the web at 320x240 sucks. I realize they do have a toaster oven sized pdaphone that does have 640x480 however unless you like to roll your phone behind you, it isn't practical. Hopefully they'll improve the BT functionality - distance etc. Lastly I would think they'll consider improving the battery life on their phones. And if the IPOD nano is any indication besides working on the GIRTH of their units, they may actually start working on style and durability.

I also think the iPhone is great for the industry as it will hopefully get MS to consider improving their voice recognition, media interface, bluetooth stack, memory support and customizing the today screen.

[Tom @ Jan 18th 2007 3:16PM]

That man is so disgusting, in every way possible, that it makes me want to cry.

[cosmicrob010 @ Jan 18th 2007 3:00PM]

I could have gone all day without seeing that photo.

[justin @ Jan 18th 2007 3:01PM]

Zune with: "20-25% of the high end of the market"

Where's he getting those numbers from?!?!

In mid december according to appleinsider:
"In the ensuing two-week period ending December 16, Current has Zune inching up to a 12 percent share of the HDD market and 3 percent share overall."

I find it hard to believe that in 4 weeks the Zune suddenly took off...and it's definitely not the most expensive phone in the market, the BlackJack is available right now for $499...and in my opinoin is not a very good offering at that price.

[Ross @ Jan 18th 2007 3:08PM]

I'm not saying Ballmer's numbers are right, but you quoted an apple fan site for numbers on a competing, Microsoft product. Would you belive Ford talking about Ford sales numbers, or what Chevy says about Ford's sales numbers?

[justin @ Jan 18th 2007 3:45PM]

haha, i know, i know, that was just a quick google search for "zune market data" here is some input from somebody else.

Zune captured 2.1 percent of the market in the week ended Nov. 25, said Stephen Baker, an analyst at Port Washington, New York-based NPD, in an interview today. – Bloomberg.com

[mrsalty @ Jan 18th 2007 3:04PM]

I've been buying 02 phones for years and they have alwyas been more expensive then the iphone. Mine, was over 800 bucks and no discount from Orange. I also, don't have near the features of the iphone. Of course my phone is TWICE as thick, take that you skinny litch iPhone.

[Michael @ Jan 18th 2007 3:04PM]

"Doesn't Microsoft sell the most expensive desktop operating systems?"

Actually, no - not by a long shot. There are flavours of Unix that are far more expensive. Also, as far as we know, XP Home is more cheaper then OSX as Apple doesn't disclose the price.

The iPhone is far too exensive, I don't think it will fall flat on its face but it's too expensive for anyone but the fashion conscious. I'll wait for the reviews, the only thing we've had so far is visuals. There is so much more to a phone then good looks...

[Scott @ Jan 18th 2007 3:10PM]

"XP Home is more cheaper then OSX as Apple doesn't disclose the price."

Um...yes they do.

OS X single license: $129
OS X Family Pack (5 licenses): $199

[DeTinux @ Jan 18th 2007 3:26PM]

Well, here where I live XP Home is € 84, while OS X is € 101.

[Jamie @ Jan 18th 2007 3:06PM]

Sorry steve but I have a $700 treo running windows mobile that crashes half the time and is heavier, uglier and increasingly more annoying than most $99 phones out there. So, please do not throw stones when you clearly have a glass jaw. And whats with the tongue!

[Dane @ Jan 21st 2007 1:30PM]

Jamie - I think you got your metaphors mixed up there...

Anyways, this phone isnt the most expensive on the market. Hasn't he seen the HTC Universal (which runs WM) or even Nokia 8800 sirocco ?

[Matt B @ Jan 18th 2007 3:06PM]

Isn't Vista Ultimate around the same price?

[ja$on @ Jan 18th 2007 3:07PM]

Someone needs to introduce that fat fonk to a tongue scraper.

GROSS!

[thegrey @ Jan 18th 2007 3:35PM]

Well if you are going to use newegg, you might as well use apple's education discounts.

OS X= $69.00

[fnord @ Jan 19th 2007 6:08PM]

Uh, neither.

[Joe @ Jan 18th 2007 6:50PM]

I could be incorrect, but you're comparing OSX full price with Windows XP upgrade price (I believe). If you don't have a prior version of Windows installed, it's not $89.

Further, you really need to compare OSX to Windows XP Pro, not home edition which is $186 at Newegg.

[Mike @ Jan 18th 2007 7:01PM]

If you want to compare Mac OS X and Windows XP, you have to take XP Pro, because OS X is the full version. Also, there is a difference between OEM software and retail software. Here, OEM versions cannot be compared because we don't know Mac OS X OEM's price. Therefore, let's compare the retail versions:

Mac OS X from Apple.com: $129
Windows XP Pro(w/coupon for Vista) from Newegg: $279.99
Inability to distinguish apples and oranges: Priceless


an I'm sorry but the "coupon for Vista" thing does not make Windows more financially attractive, it's just a way for MS to say sorry to consumers who were expecting to buy Vista in late 2006, when the corporate clients can already buy it. That's why I stayed on Windows 2000, still works as I want.

[theattack @ Jan 18th 2007 3:08PM]

actually if the cost of an ipod is 250-300 or so, and a decent smartphone is similar, 499-599 isnt too bad.

[tyler @ Jan 18th 2007 3:24PM]

umm its really not a phone, apple shouldnt have called it that.

and do u guys rememebr back in 2001 when apple came out with the ipod?!...it was 399 for only 5gb!!! but it was the coolest shit ever, nothing at the time was cooler and i bought one...so hence 499 is really not much considering all thats in this gadget, you will see, in one yr everybody will jump on the band wagon. its how it was when the ipod came out. everybody was hell now thats waaay to much money and now look how many people have one and how cheap it is, jsut give it time, microsoft is jsut jealous that they cant even compete with apple, thats why they own half of apple.

[Adam @ Jan 18th 2007 3:31PM]

Hooked on Phonics worked for me!

[Adam @ Jan 18th 2007 3:34PM]

Hooked on Phonics worked for me!

[Matt @ Jan 18th 2007 5:51PM]

That is for an upgrade only. You can't buy a full version of OS X retail, because it only comes on new Apple computers.

[Jonathan @ Jan 18th 2007 3:13PM]

I am amazed that the iphone has not got MIDP support for all those Java Midlets already out there. What a shame.

Jonathan
A Wireless Golfer
http://www.wireless18.com

[tyler @ Jan 18th 2007 6:05PM]

hello microsoft, the zune was like like 5 years to late

[sblobs @ Jan 18th 2007 4:01PM]

Hate to say it but its true though..... the iPhone is way expensive and it aint that great.. no 3G is, dare I say; pathetic.. Cingular is shit shit shit and a 2 year contract stinks. The phone market is something completely different to the MP3 player market. People wanna sync their work, they wanna cruise the net, they want tactile keyboards for touch typing.. I know it cannot be proven at this stage, but the iPhone will only be a partial success, selling to Apple fans - it will never take the phone market the way Jobs described. I love Apple but he's bitten of more than he can chew this time. It's the later incarnations of iPhone that have potential cos as it stands; this phone just doesnt cut it; even among this current gen phone set, let alone months down the line.. remember that phones get released and renewed at an extremely fast rate so the iPhone will always seem behind the standard / iPods dictate the speed; as they own the MP3 player market; they can be as slow as they like and it wont matter. Apple have admitted its not for office users, well thats a bloody big chunk of potential customers - they need their MS support and sync for the work place. I have an HTC that is completely touch screen, flip keyboard (that I could not do without! / I love this thing), its got WIFI, 3G, Bluetooth, megapixel camera, flash, 0.3 megapixel video call cam, stereo speakers built in, SD card slot (currently rocking 4gb), Word, Excel, IE, PDF viewer, etc etc, and I got this thing one whole year ago.. iPhone isnt as highly specced as this ~ and its not even out yet! I love my iPod but Im glad its seperate from my phone, so so simple to use that I wouldnt want it tainted by phone options and menus. Seperate devices for seperate things. BAH, what have you done Apple; lame!

[scottjl @ Jan 18th 2007 6:45PM]

QQ

[eikonklast @ Jan 18th 2007 3:16PM]

I wasn't aware pigs could talk.

[Joseph @ Jan 18th 2007 3:39PM]

"I have also captured princess Zelda"
--Ballmer aka Gannon

[tyler @ Jan 18th 2007 3:38PM]

microsoft, just watch how vista will fail and they will be no more, they were smart to own some of apple

[mrsalty @ Jan 18th 2007 3:19PM]

Pretty neat phone

http://www.openmoko.com/press/index.html

[scottjl @ Jan 18th 2007 6:45PM]

where can i buy one?!?!

oh wait. i can't.