Microsoft’s CEO, dancing Steve Ballmer mentioned back in September 2008, that the iPhone would fail in the next 5 years. It is not the only silly thing to come out of his mouth, but certainly one of his best hits. A cursory glance at his reasoning reveals the following issues that the iPhone faces:
- Pricing – it is currently too expensive at 500$ (though I am quite sure you get them for under 300$ and in some cases 200$).
- insupportable in emerging markets – India and China (emerging markets? China makes the market computer for Jobs’ sake!). According to Ballmer, the most popular phones in those countries cost 25$ to build. Now wait, are we talking about smartphones here or are we talking about phones now?