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The iPhone will go down in history as one of the most iconic technologies that any business has introduced to the world. But not everybody, including Microsoft’s former CEO Steve Ballmer, thought it would be a hit.
“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 in the marketplace, and let’s see how they do. But there’s no chance that the iPhone is going to get any significant market share. No chance.”
— Steve Ballmer, April 2007
Disrupting the market
Steve Jobs’ iconic presentation revealing the iPhone in January 2007 had an air of magic around it, capturing the attention of plenty of commentators and technologists.
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But there were also plenty queuing up to label it a fad that would never take off. Steve Ballmer, Microsoft’s CEO at the time, was among them.
In an interview with USA Today, a grinning Ballmer laid into the new device, criticizing its expensive pricing and the lack of a physical keyboard. This is a feature that Microsoft supported with its Windows Mobile operating system that it licensed to third-party developers like Motorola, which itself was selling a $99 Motorola Q – something that Ballmer considered a much better business alternative.
The iPhone marches on
To be fair to Ballmer, he did say in the same interview that the iPhone could end up selling really well. But he certainly failed to catch onto its appeal not only as a popular device but one that businesses would embrace.
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Businesses appreciate the intuitive mobile device management (MDM) system backing iPhone in the workplace and the interoperability between Apple devices is something many also find useful. That’s not to say Android devices aren’t suitable for businesses — but Apple indeed tops the rankings for the highest number of shipments among enterprises.
Ballmer has since conceded that he made the wrong call – and it just goes to show how tricky predicting the future could be.
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