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.
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Steve Balmer, April 30 2007 as quoted in USA Today
http://www.usatoday.com/money/companies/management/2007-04-29-ballmer-ceo-forum-usat_N.htm