Comment by ubermonkey

2 days ago

That's a great time capsule. I'd love to see a similar document from the same period from Microsoft, because I really wonder if Ballmer's much-lampooned interview after the iPhone's intro was bluster or a real position held by the mobile unit at MSFT.

"<laughs> $500 fully subsidized with a plan? 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."

It's a take that has aged like milk, but Ballmer wasn't (and isn't) an idiot. The rest of the market looked at the iPhone and saw the future, and moved accordingly. I mean, the first major users I saw of the iPhone were BUSINESS users, in point of fact.

So I've always wondered if that was just bluster, or he really was drinking so much Redmond-flavored Kool-aid that he didn't, or couldn't, see what was about to happen.

(In re: Kool-aid, in 2009-ish, my company did a joint deal at a large client with MSFT; we had complimentary products, so we were pitching as a unit. The MSFT guys were genuinely vexed that we had iPhones. Like, personally affronted. And this was in Kansas, far from the mothership. At the time, WinMo was AWFUL. It couldn't even do IMAP without a 3rd party client -- it was Exchange or POP only. None of us had ever really used a WinMo phone for very long, because (at that time) a Treo was still a great option, and RIM hadn't fully wet the bed, so WinMo was pretty thin on the ground unless your paycheck said "Microsoft" on it.)

It's funny to see $500 being expensive for a phone here, because I absolutely remember it being so far above the market that it was rare to see the first generation in the world (and they had a price cut shortly thereafter).

There has been some nasty inflation in these past years, but $500 is a budget phone these days!

  • It was $500 with an expensive mandatory 2-year contract. With an expensive 2-year contract you can get most budget phones for 'free'.