"There's no chance that the iPhone is going to get any significant market share. No chance." -- Steve Ballmer, 2007
And this is one of the reasons why he's gone.
Who cares if Apple is breaking even? The AppleTV is to consume content, which is where Apple makes their money. If they wanted to, they could cut the price to $49 and get even more marketshare.
It fascinates me that CEO's have to say things like this. All it does is make them look stupid.