Ballmer changes tune on iPhone, says no to Zune phone
Microsoft chief executive Steve Ballmer, who once laughed off the iPhone, has now conceded to Apple's edge in the market while hinting at a very different future for his company's Zune players.
Ballmer told the Financial Times (registration required) that the iPhone and BlackBerry have "clear market momentum" in the smartphone business.
Shortly after the iPhone was announced at Macworld 2007, Ballmer lambasted the Apple handset as the "most expensive phone in the world" while noting that Microsoft sells "millions and millions and millions of phones a year" while "Apple sells zero."
"I'd prefer to have our software in 60 percent or 70 percent or 80 percent of [mobile phones], than I would to have 2 percent or 3 percent, which is what Apple might get," he said. And just this past September, the Microsoft headman predicted that the iPhone's tight integration with all things Apple would cause it to "lose out" in the long run.
As for the Zune, Ballmer said this week that consumers "should not anticipate" a Zune phone. Instead of persisting as a Microsoft-built hardware product, the device's core could eventually be integrated into other Windows-powered mobile devices, he explained.
Ballmer reacts the to unveiling of iPhone in 2007.
Ballmer also said he believes the market for portable media players is in decline and will be replaced with general purpose devices like the iPhone and iPod touch.
Ballmer told the Financial Times (registration required) that the iPhone and BlackBerry have "clear market momentum" in the smartphone business.
Shortly after the iPhone was announced at Macworld 2007, Ballmer lambasted the Apple handset as the "most expensive phone in the world" while noting that Microsoft sells "millions and millions and millions of phones a year" while "Apple sells zero."
"I'd prefer to have our software in 60 percent or 70 percent or 80 percent of [mobile phones], than I would to have 2 percent or 3 percent, which is what Apple might get," he said. And just this past September, the Microsoft headman predicted that the iPhone's tight integration with all things Apple would cause it to "lose out" in the long run.
As for the Zune, Ballmer said this week that consumers "should not anticipate" a Zune phone. Instead of persisting as a Microsoft-built hardware product, the device's core could eventually be integrated into other Windows-powered mobile devices, he explained.
Ballmer reacts the to unveiling of iPhone in 2007.
Ballmer also said he believes the market for portable media players is in decline and will be replaced with general purpose devices like the iPhone and iPod touch.
Comments
I read it as him saying that he thrown in the towel vis Ã* vis phones and music players.
I just read the entire FT article and Steve Ballmer sounds down/discouraged/defeated.
I read it as him saying that he thrown in the towel vis Ã* vis phones and music players.
His focus seems to be on Google for the moment. I'm sure he's torn between all the fronts his company is battling against.
At least the Xbox is beating the pants off of the Playstation 3 so far.
I just read the entire FT article and Steve Ballmer sounds down/discouraged/defeated.
I read it as him saying that he thrown in the towel vis Ã* vis phones and music players.
They weren't likely losing money on windows media players before; but now that everyone is going DRM free, they have less incentive because nothing ties you to a platform or codec. I think the death of DRM has killed Microsoft's interest in the market.
I only want MS to create something amazing so that Apple will create something even more amazing. I want healthy competition!
... As for the Zune, Ballmer said this week that consumers "should not anticipate" a Zune phone. Instead of persisting as a Microsoft-built hardware product, the device's core could eventually be integrated into other Windows-powered mobile devices, he explained. ...
This is more than just no Zune phone, this sounds very much like the Zune itself is now officially dead.
Zune software to be integrated into WinMobile and XBox and licensed to all and sundry with the actual hardware being discontinued.
Thank goodness we all have Apple...
At least the Xbox is beating the pants off of the Playstation 3 so far.
No it's not
Instead of introducing an awkward piece of hardware built by another company using a slightly copycatted version of software/GUI after competitors beat you to the market by years (Ipod/Zune), Microsoft will instead continue writing code as usual. If anything this will save them money on R&D and hopefully let them focus on having a good competitor to OS 10.6 with Win7, and to OSX iPhone with Win7 Mobile.
I only want MS to create something amazing so that Apple will create something even more amazing. I want healthy competition!
I think you mean 10.7. No one knows for sure, but in the past release is about 1.5-2 years from first beta, which would probably mean it competes with ArcticBlizzard Leopard.
The XBOX was their best thing they did in a long time. But they messed up with the 360, no HD player, then they backed up HDDVD and that died quickly, (as I predicted). I feel bad for the people who shelled out I think they were $200 for the add on, and the 30 or so movies you can watch on it.
At least the Xbox is beating the pants off of the Playstation 3 so far.
On Google Trends PS3 is by far the winner.
URL: http://google.com/trends
Query: Xbox 360, PS3
Instead of introducing an awkward piece of hardware built by another company using a slightly copycatted version of software/GUI after competitors beat you to the market by years (Ipod/Zune), Microsoft will instead continue writing code as usual. If anything this will save them money on R&D and hopefully let them focus on having a good competitor to OS 10.6 with Win7, and to OSX iPhone with Win7 Mobile.
I only want MS to create something amazing so that Apple will create something even more amazing. I want healthy competition!
You have it with the Palm Pre but it's catch up not competition Apple needs to do.
Microsoft's bread and butter, Windows (for desktop and server), Exchange, and Office, became dominant under Bill Gates. In nearly 10 years leading once the largest company in the world, Steve Ballmer has yet to launch single successful product. He is a salesman (and not a very good one) pure and simple and as a long-time shareholder, I am flabbergasted as to how he is still leading the company.
I couldn't agree more. Microsoft has great potential. They've just had poor leadership for too long.
That said, I think they should stop trying to compete with Apple's hardware and return to making software. I personally think an Office suite for iPhone would be a great hit. Who knows, maybe they're already working on it. With Balmer's stubborn hatred of Apple, however, I doubt it.
-Clive
His focus seems to be on Google for the moment. I'm sure he's torn between all the fronts his company is battling against.
At least the Xbox is beating the pants off of the Playstation 3 so far.
Actually, (and I am not trying to argue) I think in september and october playstation 3 sold more than 360 which is why 360 had that huge price drop. But in any case the Wii is beating them both. Well atleast microsoft is still winning the battlefront vista vs os x.... and while still in the lead they are about to release a highly anticipated Windows 7.
No it's not
According to the information dump of the Internet a.k.a. Wikipedia that as of January 2009 the XBox has sold 28 million units. Compare that to the PlayStation 3 which has sold about 17 million units up until September 2008. Even if you into account that the PS3 was released a year after the XBox 360 I have doubts that Sony will be able to sell more than 10 million units in the next 12 months. Disregarding growth the XBox 360 market is currently far larger than the PS3 market so its naturally more attractive to game developers.
EDIT:
Quite frankly, although I'm looking forward to God of War 3 and the successor to Shadow of the colossus I'd currently buy an XBox 360 as well. If you don't use the PS3 as a media center or cheap Blu-Ray player the XBox 360 has a better price-performance ratio. For instance, compare the Premium XBox360 with the regular PS3. The former is cheaper (100 Euro here in Europe), comes with a wireless headset, one month trial for XBox Gold and a bigger hard drive.
Microsoft's bread and butter, Windows (for desktop and server), Exchange, and Office, became dominant under Bill Gates. In nearly 10 years leading once the largest company in the world, Steve Ballmer has yet to launch single successful product. He is a salesman (and not a very good one) pure and simple and as a long-time shareholder, I am flabbergasted as to how he is still leading the company.
I have to agree with Filburt on this one. Ballmer would be considered a chump by most corporations, and would have been fired long ago. For some unknown reason they keep him around.
On Google Trends PS3 is by far the winner.
URL: http://google.com/trends
Query: Xbox 360, PS3
Looking at sales it looks like xbox>ps3
http://www.vgchartz.com/?dg=1
*sigh* Doesn't really matter to me because with 4 young kids in the house I am stuck with the Wiitarded.