INTERVIEWER: … The Zune was getting some traction. Then Steve Jobs goes to MacWorld and he pulls out this iPhone. What was your reaction when you saw that?
STEVE BALLMER: 500 dollars? Fully subsidized? With a plan? 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.
INTERVIEWER: How do you compete with that, though? He sucked out a lot of the spotlight…
STEVE BALLMER: Let’s take phones first. 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…
(via Eric Jackson)
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