Perhaps the only person not impressed with Apple's pending iPhone launch is Microsoft's Steve Ballmer. In an interview printed in USA Today, Ballmer shrugs off the impact of the iPhone, saying it's high price will limit its appeal and that capturing 1% of any market is less than stellar.

"There's no chance that the iPhone is going to get any significant market share," he says. "No chance. It's a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I'd prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.

Ballmer dismissed any rumors that a Zune-specific phone is forthcoming, saying Microsoft won't limit a phone experience just to music. However he did not rule out that Zune-like capabilities may come to a mobile phone down the line.

Finally, he dodged the DRM question altogether, saying it is up to artists whether they use DRM or not.