Microsoft CEO Steve Ballmer has struck out yet again, in their never ending rivalry with Apple, this time stating that the iPhone has absolutely no hope of gaining a true foothold in the cellphone marketplace. From Ballmer's perspective, the future of the mobile handset business will primarily depend on software influence rather than hardware. Ballmer also believes that because Apple has insisted on utilizing their own proprietary code on such a premium device could prevent it from capturing little more than a small percent of the world's cellphone userbase. Is it just sour grapes, or has the Microsoft CEO got a point?
According to Ballmer's logic, it makes more sense to get your software in a larger market share of cell phones than it does to get your hardware out there in the hands of a few.
"Would I trade 96% of the market for 4% of the market? I want to have products that appeal to everybody," he said. "We'll get a chance to go through this [Apple versus Microsoft debate] 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."
Steve Ballmer also suggested that Apple could be creating too narrow of a focus by emphasizing the media capabilities of the iPhone, instead of having a general operating system like Windows Mobile.
So what does all this mean? Microsoft thinks that they've got a better idea of what the world wants (and needs), and (surprise) they think they're better than Apple. Of course it seems that they're not willing to show that they can create a better device, dismissing the possibility of a Zune phone once again.
Microsoft currently has their software on a small percentage of mobile phones, but the market remains dominated by phones running off variants of the open source Symbian. As far as how they are faring in the media player market, Microsoft is stuck at just 9% of market share.