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.