Microsoft CEO claims Zune market share, laughs at iPhone

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Microsoft CEO claims Zune market share, laughs at iPhone

Microsoft CEO Steve Ballmer claims that his company’s Zune media player took 20% of the high-end digital audio player market—those devices priced $249 or above—following its debut in November. Ballmer’s estimates compare to those of the NPD Group, which said this month that the Zune accounted for only 2.8% of the total digital audio player market in the five-week period from Nov. 19 to Dec. 23.

“We came into the market, a market in which they are very strong, and we took, I don’t know, but I think most estimates would say we took about 20-25% of the high end of the market,” Ballmer said in a CNBC interview. “We weren’t down at some of the lower price points, but for devices $249 and over we took, you know, let’s say about 20% of the market. So, I feel like we’re in the game, we’re driving our innovation hard and, uh, okay, we’re not the incumbent, he’s the incumbent in this game, but at the end of the day, he’s going to have to keep up an agenda that we’re gonna drive as well.”

Characteristically, Ballmer also laughed at Apple’s iPhone and its premium pricing. “$500 full-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,” Ballmer said. “Now, it may sell very well or not, I, you know. We have our strategy, we’ve got great Windows Mobile devices in the market today. You can get a Motorola Q phone now for $99, it’s a very capable machine, it’ll do music, it’ll do Internet, it’ll do email, it’ll do instant messaging. So, I kinda look at that and I say, well, I like our strategy. I like it a lot.”

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Comments

1

Hmmm, methinks the boy doth protest too much. Notice how he avoided including the 30 gig iPod in the comparison.

Posted by Aceon6 in New England, USA on January 18, 2007 at 10:50 AM (PST)

2

Zune might have claimed of the market for high-end BROWN digital audio players.

Posted by Booker on January 18, 2007 at 10:56 AM (PST)

3

He uses way too much “well, you know” in his vernacular.

And sure those other devices can do internet and email, but can they do it as well as the iPhone? I don’t think they can.

Ballmer always sounds like a blundering idiot to me.

Posted by Ben on January 18, 2007 at 10:56 AM (PST)

4

because he IS a bludering idiot?

Posted by iScott on January 18, 2007 at 11:05 AM (PST)

5

Correction: The iPhone has a (touch) keyboard available ! No need to lie here

Posted by Frankenstein on January 18, 2007 at 11:08 AM (PST)

6

“... it’s a very capable machine, it’ll do music, it’ll do Internet, it’ll do email, it’ll do instant messaging….”

Once again, Ballmer misses the point. Sure, the Motorola Q can do all that, but how well does it do it? Two words for Microsoft: User Interface.

After all, wouldn’t that be a primary concern in a consumer electronics device?

Posted by Jeremy Avalon on January 18, 2007 at 11:20 AM (PST)

7

Did he seriously say “Apple is selling zero phones a year”?

Posted by Bonk on January 18, 2007 at 11:21 AM (PST)

8

here’s Microsoft’s (and Ballmer’s) dilemma: “it’ll do…”

And here’s why Apple does so well, “it’ll be fun doing it.”

Apple sells it like it’s sex. Microsoft sells it like it’s a chore.

Posted by sarbanharble yemly on January 18, 2007 at 11:35 AM (PST)

9

“they’ll have the most expensive phone by far ever in the marketplace”

Well obviously he’s forgetting about when the Motorola RAZR came out in cost around $800 and has no where near the capabilities for the iPhone. And of course Apple is selling “Zero phones a year” Their’s hasn’t been released yet! This guy is suck a jerk.

Posted by MatrixSJD on January 18, 2007 at 11:36 AM (PST)

10

Uhm, er well, that is ya know..
Wow, can I be a CEO, too? I promise to drink lots and dis every product out there even remotely similar to m y own.
Gee, did’nt that Prada thing just get released for seven hundred plus?

Posted by Miranda Kali on January 18, 2007 at 11:44 AM (PST)

11

Sometimes I get the feeling that Steve Ballmer will go down in history as a CEO who was never right ever.

Hey Steve, how’s that $20 billion operating system coming? That money sure bought a lot of really great (stolen, late and removed from the final version) innovation! What is it, six click throughs to an IP address now? Easy to use!

Posted by dasmb on January 18, 2007 at 11:46 AM (PST)

12

I still haven’t seen a person with a Zune to date yet. Either they’re too embarrassed to whip them out or maybe since I’m Silicon Valley we’re all equipped with iPods.

Posted by AZ on January 18, 2007 at 11:56 AM (PST)

13

Don’t forget the Bang & Olufsen Serene at $1,300! At least it’s unlocked

http://www.bang-olufsen.com/page.asp?id=208

Posted by DMax on January 18, 2007 at 12:03 PM (PST)

14

RE: Keyboard comments…

An onscreen keyboard is not nearly as effective as a real keyboard. Nothing like getting your shiny iPhone smudged up.

The iPhone is cool, it may even be sexy, and its $500 price tag might be okay if you’re in the market for an iPod AND a phone at the same time…

Posted by TylerCF13 on January 18, 2007 at 12:15 PM (PST)

15

So who decided that high-end players are 249 $?

Posted by Mawr on January 18, 2007 at 12:18 PM (PST)

16

Haven’t seen a Zune on the streets of New York either—nor in the Subway, nor where I work. Of course I work in the graphics department, so we all have various iPods.

When the PSP was released it appeared in the Subway overnight.

Maybe their only being used around Settle?

Posted by Dness on January 18, 2007 at 12:21 PM (PST)

17

As usual, Ballmer shows his complete ignorance as a CEO. No wonder Microsoft displays no vision or class - look at their CEO! Him and Rob Glaser of Real would make a great couple!

Posted by billy bob on January 18, 2007 at 12:34 PM (PST)

18

Is Windoze a viable alternative? I think NOT!

Posted by Tommy on January 18, 2007 at 12:38 PM (PST)

19

The Zune reminds me of the Nintendo 64. I knew they existed, but never met anyone that actually owned one (or at least admitted to it).

Posted by Galley in Greenville, SC on January 18, 2007 at 1:03 PM (PST)

20

Is it me, or is Balmer just a total sleezeball? He always comes across to me a slimy, sweaty lying used car salesman!

Posted by Jason on January 18, 2007 at 1:04 PM (PST)

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