From WSJ, Microsoft CEO Steve Ballmer on Apple’s business model which controls hardware and software:
We like our model, as we are evolving it. In every category Apple competes, it’s the low-volume player, except in tablets. In the PC market, obviously the advantage of diversity has mattered since 90-something percent of PCs that get sold are Windows PCs. We’ll see what winds up mattering in tablets.
Ballmer conveniently forgot that Apple’s iPhone has trounced Windows Phone in sales units sold, revenue, and profit. So, Apple leads Microsoft by over 100-million units (plus revenue, plus profits) with the iPad, by a few hundred million units (plus revenue, plus profits) with the iPhone, and the low volume Mac is the world’s most profitable PC line in revenue and profits.
What was Ballmer’s response to the iPhone when it was introduced in 2007?
I said that is the most expensive phone in the world and it doesn’t appeal to business customers because it doesn’t have a keyboard, which makes it not a very good email machine …. I like our strategy. I like it a lot….Right now we’re selling millions and millions and millions of phones a year, Apple is selling zero phones a year. In six months, they’ll have the most expensive phone by far ever in the marketplace and let’s see … let’s see how the competition goes.
May Microsoft’s board of directors keep Ballmer on as CEO for another 10 years.