Poorly timed and incorrectly placed first post comment.

Okay, fair enough. If a company doesn't want to expand their market share, their own loss. Basic business concepts are just that: basic.

Ignorant American Advisory: There are people outside of your country that are not facing that transition. Unless non-US citizen's aren't welcome here, try appealing to a broader market.

Quantumphysics: What are the iPhone's unique points that cannot be replicated? Apple's patents haven't seemed to protect it this time. What is the Pre missing?

What a brain dead idiot. Like others have said, MS can charge whatever it wants. XP is a different product as well!

Apple is a dragon. Regardless of market share, the company is incredibly profitable. Not to mention that it has nearly half of Microsoft's market capitalization despite this 9% share. Of course, the two companies do have their own unique businesses (with Apple being more into hardware and Microsoft more into enterprise software). Additionally, I believe that Nilay was referring to their aggressive legal and customer service approach.

Looks like the Samsung P2, if anything: http://www.pmptoday.com/wp-content/uploads/2007/12/portable-media-player_samsung_p2-dap.jpg

HOLD THE PHONES. ENGADGET HAS SOMETHING TO SAY! Oh wait, just more pointless iPhone news. Who is Matt Saracen? Why did you call him cute? Why is this news? I crave a decent gadget blog...

Never compare stock prices in valuing companies. A stock price is a derivative of a company's total value as determined by the market. I can have company with one share priced at $100,000,000 or a company with 100,000,000 shares priced at $1. There is no difference. So while Google's share price of $521.16 compared to Yahoo's share price of $29.87 appears that Google is 17 times larger, in actual fact, according to market capitalization, Google is worth $163.04 billion and Yahoo is worth $39.92 billion - or 1/4 the size.

Unless Yahoo is having problems finding investments (not likely) and Microsoft wishes to drive down Google vicariously through Yahoo, I doubt that this strategy would yield any benefits for Microsoft.

Is a 16gb in the works?