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Ballmer on iPhone

When it comes to Ballmer, it's usually best just lay his quotes right out there. So here it goes. "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 percent or 70 percent or 80 percent of them, than I would to have 2 percent or 3 percent, which is what Apple might get."

Of course, it's tempting to compare the iPhone to the iPod--also considered a boutique item when introduced--but the cell phone market is large and far better established than the digital media player was when the iPod debuted. Even if that market is crying out for innovation and new direction. I think the iPhone will easily outperform Ballmer's 2-3 percent over the next few years, but my crystal ball is hazy as to just how well it will do. What are your thoughts?

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