With its phones Microsoft did and still does a poor job.
“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. … 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.”
Today Ballmer praises Apple’s cellular subsidy model and admitted he wished he had come up with it first.
“I wish I had thought of the model of subsidizing phones through the operators. People like to point to this quote where I said the iPhones will never sell. Well the price of $600 or $700 was too high and it was business model innovation by Apple to get it essentially built into the monthly cell phone bill.
Ballmer also admitted it was a mistake for Microsoft not to make handsets and tablets sooner.
“I would have moved into the hardware business faster and recognized that what we had in the PC, where there was a separation of chips, systems, and software, wasn’t largely going to reproduce itself in the mobile world.”
Ballmer about the iPhone …
Never mind, Steve.
You shouldn’t worry about your past decision, because you can’t change it now. Even Satya cannot fix this bug in the aftermath. Good for your competitors, bad for customers.
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