}

The Mac Observer

Steve Ballmer Reacts to the Apple iPhone

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Steve Ballmer provided his blunt assessment of the Apple iPhone in remarks posted in a video at YouTube Thursday.

The first reaction by Mr. Ballmer was that the iPhone is very expensive and would not be well accepted in the business community because it "doesnit have a keyboard." Later in the interview, he noted that Microsoft is selling millions of phones a year, but Apple is selling zero and offered, "Letis see how the competition goes..."

Later, on the subject of the iPod and music, Mr. Ballmer admitted that Apple is in a preeminent position, but added that "At the end of the day, he [Mr. Jobs] is going to have to keep up with an agenda that weire going to drive as well."

Some of that possible agenda has been analyzed here at TMO in recent editorials.

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