I just finished watching this video on YouTube of Steve Ballmer laughing at the iPhone. If watching him cheer like crazy didn’t already make me think Ballmer was living in his own reality distortion field, I certainly do now.
Balmer laughs at the first mention of the iPhone. Now don’t get me wrong, I’m certainly not a huge fan either (at least not yet), for a number of reasons. But I’m also not Chief Executive of Microsoft, laughing in the face of my competition. In business, they say never to underestimate your competition, let alone mock them. Granted, the iPhone is pricey, at $499 and $599 for the 4GB and 8GB models, respectively. What some people seem to be forgetting is that the original iPod, which sparked the fandom and success that it is today, was introduced with a $399 price tag for the 5GB model and a $499 price tag for the 10GB model released a short time later. With all the buzz surrounding the iPhone in the tech world right, it’s hard to imagine that it will flop.
Ballmer then notes that Microsoft currently sells millions of phones (referring to those with phones shipped with Microsoft Windows Mobile) whereas Apple currently ships zero. Sure that statement is accurate, but that’s becuase Apple wont begin selling the iPhone ’till June of ’07. He goes on to talk about the Zune, which launched only a couple months ago, stealing about 2% of the market. Of course, the number Ballmer mentions is the 25% share of the “over $250 mp3 market.”
It’s certainly going to be interesting to see how the iPhone continues to develop over the next few months. There’s still tons of details that no one knows and maybe Microsoft is a little scared of the iPhone, maybe they’re not, but either way, this video’s definitely worth checking out.