Ballmer: We're cheaper than Apple! (but not Linux)

http://news.cnet.com/8301-13505_3-10301028-16.html

Ballmer talking about MS/Apple/Linux: (emphasis added)

Linux. It's all about Linux. We've been competing with Linux for a number of years. I want to describe our value proposition. We are a high-volume player. We do not, like Apple, believe in low volume, very high prices. Apple's a great company, does a fine job, but their model says high margin, high quality, high price, that's kinda how they come to market.

We say we want big market share, but with big market share you take the lower price.

Well, along comes Linux, and they say, "we have no price," which of course, we know for IP and other reasons, of course they have a price. But they say "we have no price." The problem you have with these so-called free alternatives is there's also not the incentive to a lot of the hard work to build out the ecosystem to support the hardware vendors that is required.

So a model like ours, which is high volume and high value but low priced but not free. You could say are you guys in the middle ground or are you where you want to be? And I say we're exactly where we want to be.

ERRONEOUS! if anything, the Open Source philosophy creates harder working developers, and Linux is not far behind supporting the hardware vendors.

Matt Asay:

Incidentally, these same vendors make up a significant ecosystem around Linux, the very same ecosystem that Ballmer suggests won't form due to a lack of incentives. Apparently he didn't talk to his closest partner, Intel, which is now the No. 2 contributor to the Linux kernel. I guess he didn't realize that there's a lot of money to be made around Linux, and it's money that doesn't have to be shared with Microsoft.

Here is the whole article.