Microsoft CEO predicts Apple’s soon to launch hybrid device will flop.

Ballmer attacks iPhone

Outspoken CEO of Microsoft Steve Ballmer has spoken out against Apple’s forthcoming iPhone, which he predicts will be a failure.

Ballmer told USA Today that there was no chance that the iPhone is going to get any significant market share.

He said that the device was a $500 subsidised item which might make a lot of revenue but will cost a vast amount of money for a two or three per cent market share.

Ballmer did however throw some veiled praise to Apple for the iPod: "In the case of music, Apple got out early. They were the first to really recognize that you couldn’t just think about the device and all the pieces separately. Bravo. Credit that to Steve (Jobs) and Apple. They did a nice job.”

However he went on to say that the rest of the world was far from the end of its tether in terms on mp3 player innovations, but denied there would ever be a Zune type phone device from Microsoft.

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