Thursday, August 29, 2013

Steve Ballmer is Exiting Microsoft – And For Anyone Who Wonders Why

There is This Comment on the iPhone He Made in 2007

No Chance It Will Get Any Significant Market Share

Editor’s Note:  Thanks to Paul Krugman and Business Insider for the link.

Way back when, really way back, like in 2007 USA Today interviewed Steve Ballmer, the current and soon to be former head of Microsoft.  USA Today asked him about the Apple iPhone.  Here it is in all its glory.

By Kevin P. Casey for USA TODAY
To remain competitive, "We've got a lot of work to do," Steve Ballmer tells USA TODAY media reporter David Lieberman

Yeah, like getting rid of Steve Ballmer, that's Job One.

Q: People get passionate when Apple comes out with something new — the iPhone; of course, the iPod. Is that something that you'd want them to feel about Microsoft?

A: It's sort of a funny question. Would I trade 96% of the market for 4% of the market? (Laughter.) I want to have products that appeal to everybody.

Now we'll get a chance to go through this 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.

In the case of music, Apple got out early. They were the first to really recognize that you couldn't just think about the device and all the pieces separately. Bravo. Credit that to Steve (Jobs) and Apple. They did a nice job.
But it's not like we're at the end of the line of innovation that's going to come in the way people listen to music, watch videos, etc. I'll bet our ads will be less edgy. But my 85-year-old uncle probably will never own an iPod, and I hope we'll get him to own a Zune.

Don’tcha just love it, really, don’t’cha?  No chance the iPhone will bet any signficant market share!!!  And what the heck is a Zune? And how do you reconcile the statement "it's a $500 subsidized item" with "They may make a lot of money".  Did Mr. Ballmer not understand even basic business concepts?

Nice going Steve, we're going to miss you and your savvy business acumen.

1 comment:

  1. One of the most frightening aspects of this blog is its exposure of the ignorance of highly-compensated corporate executives. It is absolutely horrifying that these CEOs can make obscene amounts of money by merely displaying a facade of competence.