Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
I like that Microsofts is assuming that ALL iPhones will forever be top-of-the-line, $500 phones.

Good plan there, guys. They'd better hope that Apple doesn't come out with a $199 iPhone Nano next year to go hand-in-hand with its older brother.

they'll introduce the iphone shuffle next. it'll have just one button, and pushing that button will call a random person in your contacts-list.
 
The guy's right, as much as I hate to say it. The iPhone ISN'T going to grab that much marketshare. Limited to one carrier in one country, lacking 3G, expensive as hell. This is not going to get the amazing market share you think it will

Right. This one SINGLE model of phone is not going to blow away all other cell phones. That's totally correct.

But what about a revised model next year? And the year after that? What about different brand-lines just like the iPod has now?

He's not wrong for saying that THIS iPhone isn't going to take over the world. He is wrong for assuming that this is the only phone Apple's ever going to make, ever again.
 
Does any one phone have significant market share??? Especially in the "Smart Phone" department!!

See post above for marketshare broken down by OS. Symbian leads by a wide margin worldwide.

Anyone have stats on the Moto RAZR? I would imagine that is one of (if not THE) most popular phone on the market today.

Anyone? 5%? One out of every 20 people? I doubt it. Throw in the RIZR and KRZR and I still doubt you'll hit 5%.

3% would be a FEAT.

And those are feature phones, which comprise a much larger market than smartphones. And even still Motorola isn't exactly raking in the profits these days.

80% market-share on phone OSes? Big whoop. MS isn't making money on the hardware, so they aren't making the big money.

M$ will only get to 80% phone OS marketshare in Ballmer's most fevered dreams.
 
The guy's right, as much as I hate to say it. The iPhone ISN'T going to grab that much marketshare. Limited to one carrier in one country, lacking 3G, expensive as hell. This is not going to get the amazing market share you think it will

Who is the "you" you're referring to?

Apple aims for 1%, which is far less than Ballmer just predicted, and represents a massive number of customers.

Beyond the 1%, lower-end iPhones may well appear... and 3G is a definite, as already announced by Apple. So are other countries--on track for this year.

As for price... what's the monthly penalty you pay to subsidize those other phones that have nowhere near the storage (to pick just one feature) of the iPhone? They cost less for a reason.

I expect Apple will sell as many $500 iPhones as they can make. Then I predict they will sell cheaper versions.
 
Does any one phone have significant market share??? Especially in the "Smart Phone" department!! Anyone have stats on the Moto RAZR? I would imagine that is one of (if not THE) most popular phone on the market today.

Good point. I do have some stats from Fortune Magazine about a year and a half ago. Both the iPod and the RAZR had sold 50m units and were hailed as breakthrough products that reinvigorated companies. But 50m is only 3% of the total worldwide market, so by Ballmer's definition, that's not a success.

I believe that any product that contributes more than $200m/yr to Apple's bottom line will be seen as a success by Wall Street. That's about 1m or 2m units a year, and that's certainly doable.
 

Attachments

  • ballmer_wideweb__470x331,0.jpg
    ballmer_wideweb__470x331,0.jpg
    19.1 KB · Views: 100
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.

Has he twisted the first part of a fact into a personal preference? This is what I think he meant:

But if you actually take a look at the 1.3 billion phones that get sold, our software would be in 60% or 70% or 80% of them. And I'd like that.

This is how I would have said it:

But if you actually take a look at the 1.3 billion phones that get sold, I'd prefer to have Apples software in 2% or 3% of them, than I would to have 60% or 70% or 80%, which is what Microsoft might get.
 
Balmer said:
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.

It is a straw man arguement.

Microsoft is NOT going to have their software on 60 or 70 or 80% of them (worldwide cellphone sales).

Apple is not going to get 2 or 3% with a $500 REVERSE SUBSIDIZED phone.

Here is what IS going to happen. Apple is going to make more REVENUE and NET PROFIT on its first full year of iPhone (and related products) sales than Microsoft does on its combined hardware, software and accessory sales related to cellphones.

Apple wil have the first widely distributed handset that has multi-band cellular access AND agn wifi AND a real, desktop class internet experience WHEN you have wifi access or dock access, and a barely tolerable internet experience when "between hotspots" and relying on cellular.

THEN in ONE YEAR Apple and AT&T will roll out Wimax enabled handsets, service and a deployment plan which will literally replace cellular entirely in urban markets.

In short, he (Balmer) has already wet his (MS) shorts and he needs Depends for all future Apple or AT&T news releases.

BUY AAPL & T.

Rocketman
 
I've seen and enjoyed many parody videos of Ballmer, but the original, genuine article (as I just found at AI) is really a must see:

http://youtube.com/watch?v=wvsboPUjrGc
(Is he actually saying "GIVE IT UP FOR ME!!!" ??)

My personal favorite parody is the Young Frankenstein remix:

http://www.youtube.com/watch?v=m6rqXHX3O48 :D

You CANNOT say Steve Ballmer doesn't have more stage presence that Steve Jobs. You just cannot. (You can however comment on what KIND of stage presence :eek: )
 
I think Ballmer should focus more on Vista and Xbox than comment about other company's products. I've yet to see someone run a commercial version of Vista which seems a lot different from the launches of Win 98, Win 2000 or XP that I remember.
 
You CANNOT say Steve Ballmer doesn't have more stage presence that Steve Jobs. You just cannot. (You can however comment on what KIND of stage presence :eek: )

Ballmer literally does have more stage presence than Jobs, seeing as how he must be at least 60 pounds heavier. :D
 
The guy's right, as much as I hate to say it. The iPhone ISN'T going to grab that much marketshare. Limited to one carrier in one country, lacking 3G, expensive as hell. This is not going to get the amazing market share you think it will
!
the iphone will begin much like the original ipod, first it was limited to macs, but when oother people saw it they would go wow! then of course ity came for windows, then the smaller cheaper ipods came... i think the big expensive iphone will wow then the new smaller cheaper phones then 3g.. then the world!
 
The Blammer. . . I mean Balmer. . . in diapers image is pretty disturbing, but fits right in with is usual stage antics. He will end up regreting that his statement here sounds so much like a dare. Apple will never achieve significant market share as long as their OS is confined only to their device, but I expect their projections will be on target and their performance will mock what MS has accomplished in this space so far. Microsoft will be fervently trying to copy this experience, but as usual their usual bloatware will get in the way.
 
* "With Xbox 360, we're broadening the audience. You may notice the color is white with faceplates, not black. It actually rounds out the audience appeal of the product."

What other electronic devices also use White cases? Hmm...

Microsoft is really doing it's share of copying every other company that is succeeding when it isn't...

Zune - iPod
Vista - OS X
Xbox 360 - Nintendo and Sony

We all know what each one is ripping off.
 
Ballmer literally does have more stage presence than Jobs, seeing as how he must be at least 60 pounds heavier. :D

"WHEW! [*pant* *pant*] I LOVE THIS COMPANY! [*pant* *pant* *pant*] I LOVE THIS COMPANY!"

Oh, Ballmer. That introduction is forever etched into geeks' minds all around the world as the day Ballmer sealed his fate as a huge loser... just like all of us... but not as "fugly."

Ballmer is just fugly.

And I am not a 16-year-old girl, thank you. There simply is no other word to describe him.

-Clive
 
Sounds like MS is gonna make the same mistake with the iPod again. :rolleyes:
Yes, I think most people have been agreeing for a number of years now that as flash memory gets cheaper, more makes its way into the phone and the only things to really eat that capacity up are music, photos and video. Look at any other contract phone out there and you already have contacts, calendar, internet etc. Apple will improve on the usability of this side of things, but won't be bringing that much new to it.

Apple aims for 1%, which is far less than Ballmer just predicted, and represents a massive number of customers.

Beyond the 1%, lower-end iPhones may well appear... and 3G is a definite, as already announced by Apple. So are other countries--on track for this year.

As for price... what's the monthly penalty you pay to subsidize those other phones that have nowhere near the storage (to pick just one feature) of the iPhone? They cost less for a reason.

I expect Apple will sell as many $500 iPhones as they can make. Then I predict they will sell cheaper versions.

I agree with all but the statement about monthly penalties. From what I've read, the iPhone won't exactly be on a significantly cheaper tariff. In the UK I would predict the $499 would end up as £299-399 assuming identical conditions. With the very top end phones here being about £100 plus £50 a month rental, the iPhone would have to be available for say £35 a month to be equivalent value. Sure it's a better phone, but you can pick up 4GB of flash in a card for next to nothing these days.

As for 3G access, in this country unless you buy data bundles it's barely worth it. Wherever I am these days wanting to get online, I can guarantee about 90% of the time there is wi-fi access. I would take that over 3G every time, given the choice. Both of course would be better.

Microsoft need to wake up and realise that Apple make their money from hardware, software helps to sell it. If Apple sold 3% of the 1.3 billion phones, Microsoft scraped to 60% and Apple made up to $250 per unit and Microsoft maybe $5-10, Apple would be making equal to double the profit of Microsoft. Double the market share for Apple would be even worse to compare, ($3.9-7.8billion to Apple's $9.75billion).

Now I know Windows Mobile probably earns Microsoft more per unit, the iPhone will probably bring in less and those figures are speculation, but I used the 50% profit quoted earlier and assumed very little for Microsoft because to get that many devices running WM6, they would have to heavily subsidise and discount to get into cheaper end phones.
 
the same guy

Keep in mind guys, this is the same man who criticizes a $500 phone, yet the full version of Vista is $400, the full Office is $700!!

M$ isn't the company that should be lecturing other companies about unfair/unjust/undeserving prices. M$ is THE biggest price-gauger in the world.

Hell, at least when I buy gasoline at an insane price, it WORKS! I don't recall ever driving along in my car, and then suddenly it dies, pops up an error report, and says, "The gasoline has encountered an internal error. Send an error report?"

cz

p.s. speaking of which, I wonder what Ballmer does whenever his own O.S. crashes... I bet he shrugs it off, blaming it on hardware.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.